Development or Deterioration?: Work in Rural Asia 9781685855789

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Development or Deterioration?

Development or Deterioration? WORK IN RURAL ASIA

edited by

Bruce Koppel, John Hawkins, William James

LYN NE RIENNER PUBLISHERS BOULDER L O N D O N

P u b l i s h e d in the United States of A m e r i c a in 1994 by L y n n e R i e n n e r P u b l i s h e r s , Inc. 1800 30th Street, B o u l d e r , C o l o r a d o 8 0 3 0 1 and in the United K i n g d o m by L y n n e R i e n n e r P u b l i s h e r s , Inc. 3 Henrietta Street, C o v e n t G a r d e n , L o n d o n W C 2 E 8LU © 1994 by L y n n e R i e n n e r Publishers, Inc. All rights reserved

Library of Congress Cataloging-in-Publication Data D e v e l o p m e n t or deterioration? : work in rural Asia / edited by Bruce Koppel, John Hawkins, William James. Includes bibliographical references and index. ISBN 1-55587-471-1 1. Rural i n d u s t r i e s — A s i a — E m p l o y e e s — C a s e studies. 2. L a b o r — A s i a — C a s e studies. 3. A s i a — E c o n o m i c c o n d i t i o n s — 1 9 4 5 - — C a s e studies. I. Koppel, Bruce. II. Hawkins, J o h n N. III. James, William E. H D 8 6 5 3 . 5 . D 4 8 1994 331.12'5'095—dc20 93-40819 CIP

British Cataloguing in Publication Data A C a t a l o g u i n g in Publication record for this book is a v a i l a b l e f r o m the British Library.

Printed and b o u n d in the United States of A m e r i c a

©

T h e p a p e r used in this p u b l i c a t i o n m e e t s the r e q u i r e m e n t s of the A m e r i c a n National S t a n d a r d for P e r m a n e n c e of P a p e r for Printed Library M a t e r i a l s Z 3 9 . 4 8 - 1 9 8 4 .

To the memory ofEdna

Angeles-Reyes

Contents List of Tables List of Figures 1

2

3

4

5

6

7

8

ix xv

Rural Transformation and the Future of Work in Rural Asia, Bruce Koppel and John Hawkins

1

The Dynamics of Diversification in an Asian Rice Region, Gillian Hart

47

Profiting from the Poor: Income Generation S c h e m e s and W o m e n in Rural India, Miriam Sharma, with Urmila Vanjani

73

Class Relations and Labor Market Differentiation in Rural Bangladesh, Shelley Feldman

99

Nonfarm Work in the Philippine Rural E c o n o m y : An Omen of Change or a Change of O m e n s ? Edna Angeles-Reyes

133

Transformations in the Thai Rural Labor Market, Nipon Poapongsakorn

167

Rural Development and Nonfarm E m p l o y m e n t in Java, Tadjuddin N. Effendi and Chris Manning

211

Rural Nonagricultural Activities in China: Assisting or Impeding Agriculture? Yok-shiu

249

vii

F. Lee

viii

9

Contents

Development or Deterioration? Understanding Employment Diversification in Rural Asia, Bruce Koppel and William James

List of Acronyms The Contributors Index About the Book

275

303 305 307 325

Tables 1.1

S t r u c t u r e o f G D P in D e v e l o p i n g and D e v e l o p e d C o u n t r i e s o f the Asia P a c i f i c , 1 9 6 0 - 1 9 8 9

1.2

S t r u c t u r e o f the L a b o r F o r c e in the C o u n t r i e s o f the A s i a Pacific, 1 9 6 0 - 1 9 8 9

1.3

12

Agricultural Production (per c a p i t a ) A n n u a l G r o w t h R a t e s in the A s i a P a c i f i c , 1 9 7 1 - 1 9 9 0

1.4

10

14

R e a l G r o w t h o f V a l u e - a d d e d in A g r i c u l t u r e in the A s i a Pacific, 1 9 6 1 - 1 9 8 9

15

1.5

S e l e c t e d Data on Nonfarm E m p l o y m e n t in R u r a l A s i a

16

1.6

R e a l W a g e R a t e s in A g r i c u l t u r e in A s i a P a c i f i c C o u n t r i e s , 1960-1981

2.1

17

S i z e Distribution o f O p e r a t e d Paddy F a r m s , M u d a Irrigation S c h e m e

53

2.2

T e n u r i a l Patterns in the Muda S c h e m e , 1 9 5 5 and 1 9 7 5

53

2.3

Sungai Gajah: A g e - S e x Structure of Village Population, 1977-1987

2.4

56

A g e - S e x S t r u c t u r e o f P e o p l e W h o M o v e d in or out o f Sungai Gajah, 1 9 7 7 - 1 9 8 7

2.5

56

S u n g a i G a j a h : Distribution o f R i c e L a n d O w n e r s h i p and Operation, 1 9 7 7 - 1 9 8 7

2.6

57

S u n g a i G a j a h : T e n u r i a l A r r a n g e m e n t s for R i c e L a n d , 1977-1987

2.7

58

S u n g a i G a j a h : Nonagricultural O c c u p a t i o n a l P a t t e r n s , 1977-1987

58

IX

x

Tables

3.1

L a n d O w n e r s h i p b y C a s t e in S h a n k p u r , India

79

3.2

L a n d l e s s n e s s by C a s t e in S h a n k p u r , India

79

3.3

M a l e O c c u p a t i o n s by C a s t e in S h a n k p u r , India

80

3.4

W o m e n ' s W o r k f o r O t h e r s b y C a s t e a n d C l a s s in S h a n k p u r , India

82

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

5.1

5.2

5.3

T h e P a t t e r n of L a b o r U s e in B a n g l a d e s h by S i z e of F a r m s , 1 9 8 2

111

Occupational Structure for Landless and Small L a n d o w n i n g G r o u p s in B a n g l a d e s h , 1 9 8 0 a n d 1 9 8 2

114

D i s t r i b u t i o n of N o n f a r m W o r k e r s in B a n g l a d e s h by Land Ownership and Sex, 1980

114

C h a n g i n g S h a r e s of V a r i o u s S u b g r o u p s in t h e T o t a l P o p u l a t i o n a n d H o u s e h o l d s of B a n g l a d e s h , 1 9 6 0 - 2 0 0 6

117

A n n u a l G r o w t h R a t e s of V a r i o u s T y p e s of H o u s e h o l d s D u r i n g the I n t e r c e n s a l Y e a r s in B a n g l a d e s h , 1 9 6 0 - 2 0 0 6

117

E m p l o y m e n t G e n e r a t e d by N O R A D C r e d i t to the B a n g l a d e s h S m a l l and C o t t a g e I n d u s t r i e s Corporation, 1983-1984

119

E m p l o y e d B a n g l a d e s h P o p u l a t i o n 10 Y e a r s of A g e a n d O l d e r a n d A n n u a l G r o w t h R a t e s by O c c u p a t i o n G r o u p , 1961 to 1 9 8 3 / 8 4

121

E m p l o y e d B a n g l a d e s h P o p u l a t i o n 1 0 Y e a r s of A g e a n d O l d e r by B r o a d O c c u p a t i o n G r o u p a n d S e x , 1974, 1980, and 1 9 8 3 / 8 4

122

N u m b e r a n d D i s t r i b u t i o n of F a r m s in t h e P h i l i p p i n e s by S i z e , 1960, 1 9 7 1 , a n d 1 9 8 0

138

N u m b e r a n d D i s t r i b u t i o n of F a r m s in the P h i l i p p i n e s by T e n u r e , 1960, 1 9 7 1 , a n d 1 9 8 0

138

I n c i d e n c e of P o v e r t y in S e l e c t e d A g r i c u l t u r a l O c c u p a t i o n s a n d S u b s e c t o r s in B i c o l , 1981

140

Tables

5.4

5.5

5.6

Rural Labor Force Participation Rate and E m p l o y m e n t S t a t u s in B i c o l , 1 9 7 5 - 1 9 8 8

140

R u r a l E m p l o y m e n t by I n d u s t r y in t h e P h i l i p p i n e s , 1965-1988

141

R u r a l E m p l o y m e n t by C l a s s of W o r k e r in the P h i l i p p i n e s , 1965-1988

5.7

5.8

5.9

5.10

5.11

5.12

5.13

5.14

5.15

5.16

6.1

xi

141

D i s t r i b u t i o n of R u r a l E m p l o y m e n t in t h e P h i l i p p i n e s in Agricultural and Nonagricultural Activities, 1 9 6 5 - 1 9 8 8

147

D i s t r i b u t i o n of R u r a l E m p l o y m e n t in t h e P h i l i p p i n e s by Industry and Sex, 1 9 6 5 - 1 9 8 8

149

D i s t r i b u t i o n of R u r a l E m p l o y m e n t in t h e P h i l i p p i n e s by A g r i c u l t u r a l a n d N o n a g r i c u l t u r a l A c t i v i t i e s and C l a s s of Worker, 1965-1988

150

D i s t r i b u t i o n of R u r a l F a m i l i e s and I n c o m e in the P h i l i p p i n e s by S o u r c e of I n c o m e , 1971

150

D i s t r i b u t i o n of R u r a l F a m i l i e s a n d I n c o m e in the P h i l i p p i n e s by S o u r c e of I n c o m e , F I E S 1 9 8 5

151

D i s t r i b u t i o n of R u r a l F a m i l i e s a n d I n c o m e in the P h i l i p p i n e s by S o u r c e of I n c o m e , F I E S 1 9 8 8

153

O c c u p a t i o n s of E c o n o m i c a l l y A c t i v e M a l e P o p u l a t i o n ( 1 3 - 6 5 y e a r s o l d ) in an East L a g u n a V i l l a g e , 1 9 7 4 , 1980, and 1987

156

O c c u p a t i o n s of E c o n o m i c a l l y A c t i v e F e m a l e P o p u l a t i o n ( 1 3 - 6 5 y e a r s o l d ) in an East L a g u n a V i l l a g e , 1974, 1980, and 1987

157

S o u r c e of T o t a l I n c o m e in a L a g u n a V i l l a g e , 1 9 7 4 and 1987

158

S h a r e s of I n c o m e , O u t p u t , and E m p l o y m e n t in a L a g u n a Village, 1975/76 and 1981/82

158

G r o w t h R a t e s of R e a l G D P a n d Its C o m p o n e n t s in Thailand, 1950-1989

168

xii

Tables

6.2

S h a r e s of M a j o r S e c t o r s in G D P in T h a i l a n d , 1 9 6 0 - 1 9 8 8

168

6.3

T o t a l E m p l o y m e n t a n d S h a r e by M a j o r S e c t o r s in Thailand, 1960-1988

169

6.4

F a r m W a g e R a t e s on the C e n t r a l P l a i n s in T h a i l a n d , 1965-1976

6.5

177

R u r a l W a g e R a t e s in T h a i l a n d ' s A g r i c u l t u r a l S e c t o r , 1977-1988

177

W a g e R a t e s f o r R i c e F a r m i n g in S e l e c t e d T h a i V i l l a g e s , 1971-1990

178

D a i l y W a g e R a t e s f o r U p l a n d C r o p A c t i v i t i e s in T h a i l a n d , 1989

179

A v e r a g e W a g e s of M a l e a n d F e m a l e A g r i c u l t u r a l W o r k e r s in T h a i l a n d , 1 9 7 9 and 1 9 8 7

179

6.9

Labor Forward Cont.acts

183

6.10

C l a s s i f i c a t i o n of C o n t r a c t s a n d M a i n R e a s o n s f o r T h e i r Existence

183

6.11

Characteristics of Thai Villages and W a g e P a y m e n t M e t h o d s

189

6.12

Average W a g e for Privately E m p l o y e d Thai Males ( a g e s 15 to 5 9 ) by I n d u s t r y , 1 9 8 6

195

P e r c e n t a g e of R u r a l N o n f a r m H o u s e h o l d s in T h a i l a n d , 1 9 7 5 / 7 6 , 1981, and 1 9 8 6

196

S o u r c e s of I n c o m e of A g r i c u l t u r a l H o u s e h o l d s in T h a i l a n d , 1975/76 and 1986

197

6.6

6.7

6.8

6.13

6.14

6.15

6.16

7.1

P e r c e n t a g e of I n c o m e f r o m D i f f e r e n t S o u r c e s in R u r a l H o u s e h o l d s in T h a i l a n d , 1 9 7 5 / 7 6 , 1 9 8 1 , a n d 1 9 8 6

198

A v e r a g e W o r k H o u r s of A c t i v e R u r a l W o r k e r s in T h a i l a n d , C l a s s i f i e d by I n c o m e L e v e l , 1 9 8 0 - 1 9 8 1

199

P e r c e n t of E m p l o y m e n t S h a r e s by S e c t o r , R u r a l J a v a a n d Central Java, 1 9 7 1 - 1 9 8 5

215

Tables

7.2

7.3

7.4

xiii

S o m e C h a r a c t e r i s t i c s of W o r k e r s in S e l e c t e d Nonagricultural Occupations, Rural Java, 1985

218

I n c i d e n c e of C o m m u t i n g a n d C i r c u l a r M i g r a t i o n in J a t i n o m , by P r i m a r y A c t i v i t i e s

222

I n c i d e n c e of C o m m u t i n g a n d C i r c u l a r M i g r a t i o n in Jatinom, by Primary Activities and Periods

223

7.5

F a r m S t r u c t u r e a n d I n p u t s - O u t p u t s p e r A n n u m in J a t i n o m

223

7.6

N u m b e r of D u r a b l e G o o d s O w n e d in J a t i n o m , 1 9 8 0 - 1 9 8 9

224

7.7

Y e a r of t h e First P u r c h a s e of C o n s u m e r D u r a b l e s , Jatinom, 1989

225

7.8

S o u r c e s of I n c o m e f o r P u r c h a s e of C o n s u m e r G o o d s in Jatinom

225

C h a r a c t e r i s t i c s of E n t e r p r i s e s by N o n f a r m S e c t o r , Jatinom, 1989

227

Firm C h a r a c t e r i s t i c s of " N e w " S e r v i c e s and All S e r v i c e Activities, Jatinom, 1989

228

D i s t r i b u t i o n of S e r v i c e S e c t o r A c t i v i t i e s a n d S e x a n d A g e of S e r v i c e O p e r a t o r s - O w n e r s in J a t i n o m , 1 9 8 9

229

E d u c a t i o n a n d F o r m a l T r a i n i n g of E n t e r p r i s e O w n e r s in J a t i n o m

234

E n t e r p r i s e C h a r a c t e r i s t i c s of S e l e c t e d S e r v i c e A c t i v i t i e s in J a t i n o m

234

S e c t o r a l C o m p o s i t i o n of the R u r a l L a b o r F o r c e in C h i n a , 1978-1989

250

D i s t r i b u t i o n of Net P r o f i t s of T o w n s h i p ( C o m m u n e ) a n d V i l l a g e ( B r i g a d e ) E n t e r p r i s e s in C h i n a , 1 9 7 8 - 1 9 8 8

256

7.9

7.10

7.11

7.12

7.13

8.1

8.2

Figures

1.1

T h e D e c l i n i n g R o l e of A g r i c u l t u r e in A s i a , 1 9 6 0 - 1 9 8 8

1.2

T h e Social C o n t e x t of R u r a l W o r k

5.1

M o n t h l y W o r k d a y s S p e n t o n N o n f a r m A c t i v i t i e s in a L a g u n a V i l l a g e , All H o u s e h o l d s

159

M o n t h l y W o r k d a y s S p e n t on N o n f a r m A c t i v i t i e s in a Laguna Village, Large Farm Households

159

M o n t h l y W o r k d a y s S p e n t o n N o n f a r m A c t i v i t i e s in a Laguna Village, Small Farm Households

160

5.2

5.3

5.4

7 31

M o n t h l y W o r k d a y s S p e n t on N o n f a r m A c t i v i t i e s in a Laguna Village, Landless Households

160

7.1

E s t a b l i s h m e n t of S e r v i c e A c t i v i t y in J a t i n o m

231

7.2

M e a n H o u s e h o l d I n c o m e by A c t i v i t y a n d L a n d o w n i n g C l a s s in J a t i n o m

238

7.3

M e a n H o u s e h o l d I n c o m e by A c t i v i t y a n d L a n d o w n i n g C l a s s in J a t i n o m ( h o u s e h o l d s w i t h m a j o r i t y of i n c o m e from services)

238

M e a n H o u s e h o l d I n c o m e by A c t i v i t y a n d L a n d o w n i n g C l a s s in J a t i n o m ( h o u s e h o l d h e a d s e n g a g e d in s e r v i c e s )

239

7.4

xv

1 Rural Transformation and the Future of Work in Rural Asia Bruce Koppel and John Hawkins What is the f u t u r e of w o r k in rural A s i a ? T w o b r o a d t r a j e c t o r i e s a p p e a r a v a i l a b l e . T h e f i r s t — o f t e n a s s o c i a t e d with the agrarian transformation and p o s t w a r industrialization e x p e r i e n c e s o f J a p a n , K o r e a , and T a i w a n — c a n be c a l l e d a d e v e l o p m e n t a l trajectory. It is c h a r a c t e r i z e d by a relatively e g a l i t a r i a n distribution o f land a n d a low i n c i d e n c e o f rural h o u s e h o l d s without a c c e s s to land but d e p e n d e n t on p r o d u c t i o n a g r i c u l t u r e for their livelihoods. R i s i n g agricultural i n c o m e s and productivity generate s a v i n g s , investment in education, and increased d e m a n d for n o n f a r m g o o d s . M e a n while, farm h o u s e h o l d labor is increasingly f r e e d for p r o d u c t i v e participation in n o n f a r m work for s u p p l e m e n t a l i n c o m e . W a g e s for n o n f a r m inc o m e g r a d u a l l y match and then g r o w higher than agricultural w a g e s — i n part b e c a u s e o f d i v e r s i f i c a t i o n within the n o n f a r m s e c t o r and e x p a n d i n g p o s s i b i l i t i e s for o c c u p a t i o n a l mobility a c r o s s the n o n f a r m sector into the urban sector. A s e c o n d t r a j e c t o r y — o f t e n a s s o c i a t e d with the j u x t a p o s i t i o n of high a g r a r i a n p o p u l a t i o n g r o w t h and d e n s i t i e s , s t a g n a n t a g r i c u l t u r a l p r o d u c tivity g r o w t h , s k e w e d distribution of a c c e s s to land, a n d s i g n i f i c a n t numbers of l a n d l e s s rural h o u s e h o l d s n e v e r t h e l e s s d e p e n d e n t on a g r i c u l t u r e ( d e s c r i b e d e s p e c i a l l y in S o u t h A s i a ) — c a n be c a l l e d a d e t e r i o r a t i o n traj e c t o r y . It is m a r k e d by an i n c r e a s i n g i n c i d e n c e o f n o n f a r m e m p l o y m e n t and i n c o m e , r e f l e c t i n g the i n c r e a s i n g d i f f i c u l t i e s a g r a r i a n h o u s e h o l d s f a c e in m a i n t a i n i n g their b a s i c w e l f a r e . W a g e s for n o n f a r m i n c o m e tend to b e l o w , a n d o c c u p a t i o n a l d i v e r s i f i c a t i o n within the n o n f a r m s e c t o r t e n d s to b e c o n f i n e d to u n s k i l l e d p o s i t i o n s . R e s i d e n t i a l m o b i l i t y to the urban s e c t o r is u s u a l l y a s s o c i a t e d with a c o m p a r a b l e u n s k i l l e d o c c u p a tional role. B o t h o f f - f a r m and n o n f a r m e m p l o y m e n t are on the rise throughout rural A s i a ( S h a n d , 1 9 8 6 ) . B u t what is the s i g n i f i c a n c e o f this d i v e r s i f i c a tion, in theoretical and policy terms? In terms of i n c o m e , productivity, mobility, and w e l f a r e , under what conditions is this diversification broadly indicative o f a d e v e l o p m e n t a l trajectory? A n d under what conditions d o e s it indicate a deterioration trajectory?

1

2

Bruce Koppel and John Hawkins

W e r e t u r n , t h e r e f o r e , to t h e initial q u e s t i o n , W h a t is the f u t u r e of w o r k in r u r a l A s i a ? A W o r l d B a n k r e p o r t s u m m a r i z e d the r u r a l e m p l o y m e n t p r o s p e c t s in B a n g l a d e s h in t h e m i d - 1 9 8 0 s . T h e absorption o f o n e m i l l i o n n e w entrants to the labor f o r c e per annum in the c o n t e x t o f i n c r e a s i n g l a n d l e s s n e s s and the e x i s t i n g structure o f the e c o n o m y is a f o r m i d a b l e j o b . In a d d i t i o n . . . o p e n u n e m p l o y m e n t in B a n g l a d e s h is l o w b e c a u s e p e o p l e o f t e n e n g a g e in part-time or short duration w o r k in order to s u r v i v e , but u n d e r e m p l o y m e n t is h i g h . . . . U n fortunately there are n o e a s y or q u i c k s o l u t i o n s for c r e a t i n g p r o d u c t i v e e m p l o y m e n t of this m a g n i t u d e . T h i s is particularly b e c a u s e the majority of the poor have no assets, and very f e w of the skills necessary for e n g a g ing in productive activity. . . . H o w e v e r , if i m m e d i a t e and direct action is not taken, the situation can only g r o w w o r s e (World Bank, 1984: 15).

A l t h o u g h the m a g n i t u d e of the p r o b l e m v a r i e s t h r o u g h o u t A s i a , t h e s e r i o u s n e s s c o n v e y e d by t h e r e p o r t ' s c o n c l u s i o n s are n o t c o n f i n e d to B a n g l a d e s h . G . E d g r e n a n d N . M u q t a d a ( 1 9 8 7 : 7) b e g i n an o v e r v i e w of A s i a ' s rural e m p l o y m e n t s i t u a t i o n w i t h a s o m b e r i n t r o d u c t i o n : A g a i n s t the b a c k d r o p o f e x i s t i n g l e v e l s of u n e m p l o y m e n t , u n d e r e m p l o y ment, p o v e r t y , e c o n o m i c inequality and l a n d l e s s n e s s in several countries o f the A s i a - P a c i f i c r e g i o n , the n e e d to g e n e r a t e rural e m p l o y m e n t on a substantial scale can hardly be e x a g g e r a t e d . W h i l e the d e v e l o p m e n t plans in all of the r e g i o n ' s c o u n t r i e s are c o n c e r n e d with i m p r o v i n g the c o n d i tions of the rural poor, m o s t of the programs have failed to e f f e c t i v e l y address the target p o p u l a t i o n .

R e c o g n i t i o n of t h e s c o p e of rural p o v e r t y in Asia is c e r t a i n l y not n e w . H o w e v e r , the e c o n o m i c d y n a m i s m of the r e g i o n in the 1980s ( e s p e c i a l l y in S o u t h e a s t a n d East A s i a ) d i v e r t e d the a t t e n t i o n of m a n y g o v e r n m e n t s , d e v e l o p m e n t a s s i s t a n c e d o n o r s , and m a i n s t r e a m a n a l y s t s a w a y f r o m b o t h the p e r s i s t e n c e of l a r g e - s c a l e r u r a l p o v e r t y in S o u t h a n d S o u t h e a s t A s i a a n d the s i g n i f i c a n t a n d s y s t e m a t i c rural s t a g n a t i o n in parts of East A s i a (e.g., t h e g r a y i n g of t h e f a r m p o p u l a t i o n in J a p a n and K o r e a a n d the lack of s u c cessor farmers). U n t i l r e l a t i v e l y r e c e n t l y , the p r o b l e m s of r u r a l p o v e r t y — w h e n t h e y w e r e n o t i c e d — w e r e v i e w e d p r i n c i p a l l y as a g r a r i a n issues. T h e y w e r e b e l i e v e d to be r e l a t e d to p r o b l e m s of l o w l a n d p r o d u c t i v i t y a n d e v e n l o w e r l a b o r p r o d u c t i v i t y , u n c e r t a i n a c c e s s to a d e q u a t e p r o d u c t i v e r e s o u r c e s (land, water, and technology), unstable agricultural incomes, and insuffic i e n t g o v e r n m e n t i n v e s t m e n t in a n d s u p p o r t f o r the h u m a n r e s o u r c e d e v e l o p m e n t t h a t c o u l d f o s t e r a b e t t e r u n d e r s t a n d i n g a n d a p p l i c a t i o n of n e w production technologies and information. In the 1 9 5 0 s a n d 1 9 6 0 s , t h e p r i n c i p a l s o l u t i o n s to t h e s e p r o b l e m s w e r e g e n e r a l l y t h o u g h t to b e l a b o r - i n t e n s i v e r u r a l p u b l i c w o r k s a i m e d at p r o -

Rural Transformation and the Future of Work

3

v i d i n g e m p l o y m e n t f o r l a r g e n u m b e r s of l a n d l e s s l a b o r e r s a n d s e a s o n a l l y u n e m p l o y e d a g r i c u l t u r a l w o r k e r s . L a n d r e f o r m w a s a d v o c a t e d , in s o m e c a s e s , as a s o l u t i o n to w i d e s p r e a d rural u n e m p l o y m e n t , b u t this c o u r s e a p p e a r e d p o l i t i c a l l y i n f e a s i b l e , e s p e c i a l l y in r e f o r m i s t s e t t i n g s . A g r i c u l t u r a l p e r f o r m a n c e was a concern, but there was widespread skepticism and even p e s s i m i s m about the prospects for i m p r o v i n g agricultural productivity a m o n g " p e a s a n t " p r o d u c e r s . In t h e 1 9 7 0 s a n d 1 9 8 0 s , this s k e p t i c i s m w a s e s s e n t i a l l y r e v e r s e d as a result of s e v e r a l m e a s u r e s f o c u s e d o n i m p r o v i n g agricultural organization and performance. These measures were optim i s t i c a l l y t h o u g h t to b e c o r r e c t i o n s f o r w h a t w e r e s e e n as f u n d a m e n t a l l y agrarian problems. Most notable a m o n g these m e a s u r e s w a s what w a s called the "green r e v o l u t i o n " — t h e a p p l i c a t i o n of s c i e n c e a n d t e c h n o l o g y to b a s i c c e r e a l grain p r o d u c t i o n in d e v e l o p i n g A s i a ( a n d later a p p l i e d to o t h e r a r e a s ) . T h i s g r e e n r e v o l u t i o n w a s s u p p o s e d to a d d r e s s t h e i s s u e of p e r s i s t e n t l o w a g r i c u l t u r a l p r o d u c t i v i t y . It w o u l d d o this t h r o u g h b r e e d i n g p r o g r a m s , p a r t i c u l a r l y at t h e I n t e r n a t i o n a l R i c e R e s e a r c h I n s t i t u t e in t h e P h i l i p p i n e s , that g e n e r a t e d c e r e a l g r a i n s e e d s that w e r e i n h e r e n t l y m o r e p r o d u c t i v e a n d , at the s a m e time, more r e s p o n s i v e to c o m p l e m e n t a r y inputs, notably water a n d f e r t i l i z e r . T h e a v a i l a b i l i t y of this t e c h n o l o g y h e l p e d , in turn, to r a t i o nalize m a s s i v e i n v e s t m e n t ( g e n e r a l l y via l o a n s a n d g r a n t s f r o m f o r e i g n aid a g e n c i e s ) in a g r i c u l t u r a l i n f r a s t r u c t u r e — e s p e c i a l l y i r r i g a t i o n a n d f a r m - t o m a r k e t r o a d s a n d a v a r i e t y of s u b s i d i z a t i o n p r o g r a m s d e s i g n e d to e n c o u r a g e i n c r e a s e d f e r t i l i z e r use ( p a r t i c u l a r l y in a r e a s d e e m e d m o s t s u i t a b l e f o r g r a i n p r o d u c t i o n ) . All this w a s s u p p o s e d to r e d u c e e x c e s s i v e v a r i a b i l i t y in c r o p y i e l d s a n d i m p r o v e p h y s i c a l a c c e s s to m a r k e t s . T o s o m e , a n a l y s e s of s u c c e s s f u l e c o n o m i c d e v e l o p m e n t e x p e r i e n c e s in J a p a n , K o r e a , a n d T a i w a n s u g g e s t e d that g r o w t h in a g r i c u l t u r a l p r o d u c t i v i t y a n d i n c o m e s c o u l d s i g n i f i c a n t l y i m p r o v e l e v e l s of s a v i n g s a n d i n v e s t m e n t by rural h o u s e h o l d s and thus h e l p to f i n a n c e i n d u s t r i a l i z a t i o n . H o w e v e r , t h i s v i e w of an i n d u s t r i a l i z a t i o n p r o c e s s p u s h e d a l o n g by a g r i c u l t u r a l d e v e l o p m e n t w a s o v e r s h a d o w e d by a n o t h e r i n t e r p r e t a t i o n in the m i d - 1 9 7 0 s . In t h e n e w i n t e r p r e t a t i o n , t h e r e w a s a g r o w i n g e m p h a s i s o n export-led industrialization, which again implicitly equated agriculture w i t h t r a d i t i o n a l ( a s o p p o s e d to m o d e r n ) e c o n o m i c d e v e l o p m e n t . 1 In e f f e c t , the c a u s e of rural p o v e r t y w a s not b e l i e v e d to be l o w a g r i c u l t u r a l p r o d u c tivity per se, n o r e v e n t h e p o l i t i c a l e c o n o m y of a g r i c u l t u r a l o r g a n i z a t i o n (a p o i n t m a d e s t r o n g l y by L a t i n A m e r i c a n a n d S o u t h A s i a n a n a l y s t s ) ; m o r e p r e c i s e l y , it w a s the p e r s i s t e n c e of p e a s a n t a g r i c u l t u r e . W h a t w a s n e e d e d w a s n o t i m p r o v e d p r o d u c t i v i t y in p e a s a n t a g r i c u l t u r e — a n e c e s s a r y but i n s u f f i c i e n t c o n d i t i o n f o r i m p r o v i n g rural w e l f a r e — b u t r a t h e r a s u p p l e m e n t a t i o n of t h e f u n d a m e n t a l m o d e of p r o d u c t i o n in p e a s a n t h o u s e h o l d s . I n t e r e s t s in s t r a t e g i e s of f o r m a l , n o n f o r m a l , a n d inf o r m a l e d u c a t i o n ( e s p e c i a l l y in C h i n a a n d I n d i a ) — i n c l u d i n g c o m m u n i t y

4

Bruce Koppel and John Hawkins

d e v e l o p m e n t a n d r e s o u r c e m a n a g e m e n t and p a r t i c i p a t o r y d e v e l o p m e n t — s u g g e s t e d that t h e r e w a s a s t r o n g p o t e n t i a l f o r r a i s i n g l a b o r p r o d u c t i v i t y t h r o u g h local r e s o u r c e m o b i l i z a t i o n a n d e c o n o m i c d i v e r s i f i c a t i o n . S t r a t e g i e s to p r o m o t e r u r a l i n d u s t r i a l i z a t i o n and r u r a l e n t e r p r i s e d e v e l o p m e n t w e r e s e e n as a v e n u e s f o r a b s o r b i n g " e x c e s s " rural labor, c h a n n e l i n g r u r a l i n v e s t m e n t a n d e n t r e p r e n e u r s h i p to m o r e p r o d u c t i v e p u r p o s e s , and f a c i l i tating a g r i c u l t u r a l - n o n a g r i c u l t u r a l l i n k a g e s within rural a r e a s t h r o u g h a v a riety of p r o g r a m s in j o b t r a i n i n g a n d small e n t e r p r i s e d e v e l o p m e n t ( K o p pel, 1 9 8 9 ) . P a r t i c u l a r l y in the 1 9 8 0 s , a d v o c a t e s of e c o n o m i c p o l i c y r e f o r m f o r p l a c e s s u c h as B a n g l a d e s h , I n d o n e s i a , a n d the P h i l i p p i n e s a r g u e d that e x c e s s i v e g o v e r n m e n t i n t e r v e n t i o n in a g r i c u l t u r a l f a c t o r m a r k e t s h a d , in f a c t , d i s t o r t e d t h o s e m a r k e t s (e.g., t h r o u g h credit a n d f e r t i l i z e r s u b s i d i e s ) a n d u l t i m a t e l y s t r e n g t h e n e d d i s i n c e n t i v e s to i n v e s t m e n t a n d s a v i n g s b y agricultural households. T o t h e d e g r e e that e m p l o y m e n t , rather than i n c o m e , w a s r e c o g n i z e d in t h e s e d i f f e r e n t m e a s u r e s a s a c r u c i a l a n d d i s t i n c t d i m e n s i o n of t h e r u r a l p o v e r t y q u e s t i o n , it w a s still v i s u a l i z e d p r i n c i p a l l y in r e l a t i o n to a g r i c u l tural a n d a g r a r i a n p r o c e s s e s . T h i s f o c u s w a s c a p t u r e d in t h e g r o w i n g i n terest in " o f f - f a r m " e m p l o y m e n t , that is, e m p l o y m e n t by m e m b e r s of f a r m h o u s e h o l d s in a c t i v i t i e s o f f their o w n f a r m s . T h e m a j o r a p p a r e n t e x c e p t i o n to e m b e d d i n g rural e m p l o y m e n t i s s u e s in a g r a r i a n p r o c e s s e s w a s a l a r g e b o d y of literature o n r u r a l - t o - u r b a n m i g r a t i o n . But in fact, m o s t of this lite r a t u r e w a s not an e x c e p t i o n . T h e c a u s e s of m i g r a t i o n w e r e g e n e r a l l y tied to u n d e r e m p l o y m e n t in a g r i c u l t u r e . A n d m u c h of the m i g r a t i o n l i t e r a t u r e a r g u e d implicitly that the a l t e r n a t i v e to participation in a g r a r i a n labor m a r k e t s in rural a r e a s w a s p a r t i c i p a t i o n in n o n a g r i c u l t u r a l l a b o r m a r k e t s in u r b a n a r e a s . C o n s e q u e n t l y , rural a n d agrarian w e r e v i e w e d as e q u i v a l e n t . M o r e r e c e n t l y , h o w e v e r , t h e l i t e r a t u r e on rural p o v e r t y in A s i a h a s s t a r t e d to m o v e b e y o n d t h e e a r l i e r and n a r r o w e r f o c u s on a g r a r i a n i n c o m e a l o n e (e.g., E d g r e n a n d M u q t a d a , 1987; Khan and Lee, 1985; U N D P , 1 9 9 0 a n d 1991; W o r l d B a n k , 1 9 9 1 ) . A n e x p l o r a t i o n of the f u l l e r c o m p l e x i t i e s of rural l a b o r p r o c e s s e s in A s i a h a s b e g u n . T h e critical q u e s t i o n , h o w e v e r , is this: In w h a t c o n t e x t s h o u l d t h i s e x p l o r a t i o n be f r a m e d ? S e v e r a l a n s w e r s h a v e b e e n p r o p o s e d , f o u r of w h i c h stand out. O n e a n s w e r is to m a i n t a i n t h e agrarian f o c u s and t h e r e f o r e c o n t i n u e to s e e rural labor p r o c e s s e s as o f f s h o o t s of f u n d a m e n t a l l y a g r a r i a n p r o c e s s e s . T h e extensive literature on labor seasonality and o f f - f a r m rural e m p l o y m e n t e x e m p l i f i e s this. M u c h of this literature v i e w s s e a s o n a l i t y in a g r i c u l tural labor d e m a n d as the m a j o r d r i v i n g f o r c e b e h i n d the v a r i a b i l i t y in d e m a n d f o r l a b o r in a g r i c u l t u r a l l a b o r m a r k e t s ; it a l s o d e f i n e s o f f - f a r m e m p l o y m e n t a s e q u i v a l e n t to o t h e r - f a r m e m p l o y m e n t . T h e s e a s o n a l i t y of l a b o r d e m a n d is s e e n p r i n c i p a l l y as an o u t c o m e of p o p u l a t i o n g r o w t h a n d , s e c o n d a r i l y , o f the w a y in w h i c h a g r i c u l t u r a l p r o d u c t i o n is o r g a n i z e d in t e r m s of c r o p p i n g i n t e n s i t y . T h i s a n s w e r a p p e a r s r e l e v a n t in p u r e l y a g r a r ian s e t t i n g s , b u t is a r g u a b l y p r o b l e m a t i c in o t h e r c o n t e x t s .

5

Rural Transformation and the Future of Work

A n o t h e r a n s w e r is to s e e the rural e c o n o m y a s d o m i n a t e d by but n o t l i m i t e d to a g r a r i a n p r o c e s s e s . T h i s l e a d s to t h e r e c o g n i t i o n t h a t ( 1 ) t h e r e is a d i s t i n c t i o n b e t w e e n o f f - f a r m ( i . e . , o f f " o w n " f a r m but o n " o t h e r " f a r m ) a n d n o n f a r m w o r k within

rural a r e a s , a n d ( 2 ) t h e r e a r e p o s s i b i l i t i e s o f d i s -

tinct although linked labor markets for these different forms o f employm e n t . A s i l l u s t r a t e d in p a r t i c u l a r by a n a l y s e s o f t h e e c o n o m i c d e v e l o p m e n t e x p e r i e n c e in T a i w a n and K o r e a d u r i n g t h e 1 9 6 0 s , a s w e l l a s g r o w i n g r e s e a r c h in the 1 9 8 0 s on the r o l e s o f w o m e n in rural d e v e l o p m e n t , this v i e w i n v i t e s an e x p l o r a t i o n o f a g r i c u l t u r e - n o n a g r i c u l t u r e l i n k a g e s a s b o t h an int r a r u r a l a n d a r u r a l - u r b a n q u e s t i o n . In p r a c t i c e , t h e r e s e a r c h h a s c o n c e n t r a t e d h e a v i l y o n the rural h o u s e h o l d a s a unit o f a n a l y s i s — a c o n c e n t r a t i o n b a s e d on a s s u m p t i o n s a b o u t the unity a n d s t a b i l i t y o f rural h o u s e h o l d s a n d t h e e q u i v a l e n c e o f the r e s i d e n t i a l h o u s e h o l d a n d t h e f a m i l y . T h e s e s u m p t i o n s m a y not a l w a y s b e v i a b l e ( W i l k ,

as-

1989).

A third a n s w e r is to r e j e c t the u n d e r l y i n g p r i m a c y o f t h e u r b a n - r u r a l d i c h o t o m y a l t o g e t h e r and a r g u e that l a b o r p r o c e s s e s in rural a r e a s a r e increasingly

a r t i c u l a t i n g with (and h e n c e , o f t e n

indistinguishable

from)

b r o a d e r l a b o r p r o c e s s e s that f u n c t i o n o n n a t i o n a l a n d e v e n t r a n s n a t i o n a l s c a l e s . T h e f a c t o r s d r i v i n g this a r t i c u l a t i o n i n c l u d e : t h e i n t e r n a t i o n a l i z a tion o f capital and c o m m o d i t y markets ( M c M i c h a e l , 1 9 9 2 ) ; the d e v e l o p ment

of

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commodity

systems

with

associated

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e c o n o m i e s o f c o n t r o l and d i v i s i o n s o f l a b o r ; a n d , p a r t i c u l a r l y in A s i a , the e m e r g e n c e o f n e w and e s p e c i a l l y i n t e n s e f o r m s o f r u r a l - u r b a n

interac-

t i o n — c h a r a c t e r i z e d b y patterns o f m i x e d l a n d u s e a n d e m p l o y m e n t — t h a t may represent a distinct " t h i r d " settlement trajectory ( M c G e e , 1 9 8 7 ; G i n s b u r g , K o p p e l , a n d M c G e e , 1 9 9 1 ) . F r o m this p e r s p e c t i v e , a c r u c i a l i s s u e is to d e t e r m i n e the s i g n i f i c a n c e o f s p e c i f i c p a t t e r n s o f a r t i c u l a t i o n a n d i n c o r p o r a t i o n f o r the c h a r a c t e r i s t i c s o f l o c a l ( i n t h i s c a s e , r u r a l ) l a b o r p r o c e s s e s . An

insistence

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of macro-micro

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m a t c h e d , h o w e v e r , by c o m p e l l i n g e v i d e n c e o f h o w t h e s e l i n k a g e s e v o l v e or how they actually influence and are i n f l u e n c e d by local r e s o u r c e allocation processes. A f o u r t h a n s w e r , w h i c h r e a l l y c r o s s e s t h e f i r s t t h r e e , is t o s e e rural l a b o r p r o c e s s e s in t e r m s o f r e l a t i o n s h i p s b e t w e e n the s t a t e a n d t h e e c o n o m y . T h e r e a r e t w o m a j o r v a r i a n t s to t h i s a n s w e r . O n e f o c u s e s o n an a s s e s s m e n t o f the impacts o f m a c r o e c o n o m i c p o l i c y r e g i m e s ( a n d p o s s i b l y s e c t o r a l p o l i c i e s as w e l l ) on s e c t o r a l p e r f o r m a n c e ( e . g . , t h r o u g h e s t i m a t e s o f bias and e f f e c t i v e protection). A s e c o n d variant e x a m i n e s relationships a m o n g the s t a t e , c l a s s f o r m a t i o n a n d the d i v i s i o n o f l a b o r , a n d t r a j e c t o r i e s o f e c o n o m i c d e v e l o p m e n t . B o t h v a r i a n t s e x p l o r e the w a y s in w h i c h the a c tivities and interests o f the state i n f l u e n c e a n d are i n f l u e n c e d b y t h e p o l i t i c a l o r g a n i z a t i o n o f rural e c o n o m i e s . H e r e , t o o , h o w e v e r , a n a l y s e s o f l i n k a g e s h a v e f o c u s e d o n a s s e s s m e n t s o f l a r g e l y p r e s u m e d o u t c o m e s r a t h e r than p r o c e s s e s that h a v e b e e n d i s c o v e r e d a n d e v a l u a t e d . T h i s l e a v e s o p e n the issue o f p o t e n t i a l v a r i a b i l i t i e s a m o n g s t r u c t u r e s , p r o c e s s e s , a n d o u t c o m e s .

6

Bruce Koppel and John Hawkins

E a c h of t h e s e f o u r a l t e r n a t i v e s c o n s t i t u t e s an a r e n a f o r i m p o r t a n t t h e o r e t i c a l , p o l i c y , a n d e m p i r i c a l d e b a t e s . B u t w h i c h of t h e s e p e r s p e c t i v e s is t h e m o s t a p p r o p r i a t e f o r u n d e r s t a n d i n g t h e s i g n i f i c a n c e of a n d c o n t e x t f o r c h a n g e s in r u r a l l a b o r p r o c e s s e s in A s i a ? A n d w h e n a n d w h e r e is t h a t p e r s p e c t i v e a p p l i c a b l e ? T h e p u r p o s e of t h i s b o o k is to g a i n a b e t t e r u n d e r s t a n d i n g of t h e s e q u e s t i o n s , b o t h c o n c e p t u a l l y a n d e m p i r i c a l l y . T o d o t h i s , t h e f o c u s is o n t h e e m e r g e n c e a n d s i g n i f i c a n c e of n o n f a r m n o n a g r i c u l t u r a l e m p l o y m e n t within rural Asia. T h e studies that follow were cooperatively d e s i g n e d b y all t h e a u t h o r s to o f f e r p e r s p e c t i v e s that a r e d i v e r s e — d r a w ing f r o m the traditions of a n t h r o p o l o g y , e c o n o m i c s , g e o g r a p h y , regional d e v e l o p m e n t , p o l i t i c a l s c i e n c e , a n d s o c i o l o g y — b u t that a l s o c o n v e r g e in p l a c i n g t h e e m e r g e n c e of n o n f a r m r u r a l w o r k in c o n t e x t s that a r e b r o a d e r than a strictly agrarian one.2 T o do this, the studies identify the characteri s t i c s o f e m p l o y m e n t d i f f e r e n t i a t i o n p r o c e s s e s in s e l e c t e d p a r t s o f r u r a l A s i a , g i v i n g s p e c i a l e m p h a s i s t o t h e g r o w i n g i m p o r t a n c e of n o n a g r i c u l tural w o r k in r u r a l a r e a s . T h e a u t h o r s i n d i c a t e h o w t h e s e c h a r a c t e r i s t i c s a r e r e l a t e d to w i d e r p r o c e s s e s of s t r u c t u r a l t r a n s f o r m a t i o n in t e r m s of ( 1 ) relationships b e t w e e n the state, the rural e c o n o m y , and class d e v e l o p m e n t ; ( 2 ) b r o a d e r p a t t e r n s of e c o n o m i c i n t e g r a t i o n a n d t e c h n o l o g i c a l c h a n g e ; ( 3 ) the gender implications and e c o n o m i c and technological change; and (4) l o c a l p r o c e s s e s o f d e m o g r a p h i c , e c o n o m i c , a n d p o l i t i c a l c h a n g e . T h i s is not to suggest that the authors believe that a m o r e traditional, agrarian-foc u s e d e x p l a n a t i o n will n e v e r s u f f i c e b u t r a t h e r that f o r t h e a r e a s t h e y c o n s i d e r e d , r e s t r i c t i o n to a n a g r a r i a n c o n t e x t w o u l d b e i n a d e q u a t e . T h e s t u d i e s a r e p r e s e n t e d in a p r o g r e s s i o n of c o n t e x t s . T h e f i r s t a r e e s s e n t i a l l y e x t e n s i o n s o f p r o c e s s e s of a g r a r i a n d i f f e r e n t i a t i o n in M a l a y s i a , t h e R a j a s t h a n a r e a of I n d i a , a n d B a n g l a d e s h . N e x t a r e c o n t e x t s i n f l u e n c e d b y t h e e m e r g e n c e of s i g n i f i c a n t n o n - a g r a r i a n - b a s e d e c o n o m i c i n t e r e s t s — e s p e c i a l l y in t h e s e r v i c e s e c t o r — w i t h i n r u r a l a r e a s of t h e

Philippines,

T h a i l a n d , a n d I n d o n e s i a . T h e f i n a l s t u d y e x p l o r e s c o n t e x t s in w h i c h u r b a n a n d i n d u s t r i a l f o r c e s a r e p l a y i n g e s p e c i a l l y i m p o r t a n t r o l e s in d r i v i n g p r o c e s s e s of r u r a l t r a n s f o r m a t i o n in s o u t h e r n C h i n a . T h e p u r p o s e of t h i s o p e n i n g c h a p t e r is t o i n t r o d u c e s e v e r a l of t h e m a j o r i s s u e s t h a t a r e c o n s i d e r e d in t h e s t u d i e s that f o l l o w . B u t c l e a r l y , there are no easily transferable c o n c e p t u a l f r a m e w o r k s or policy generali z a t i o n s t h a t c a n b e c o m f o r t a b l y a p p l i e d a c r o s s all c a s e s . T h i s is b e c a u s e t h e d i v e r s i t y of w h a t is u n f o l d i n g in r u r a l A s i a e x c e e d s w h a t h a s b e e n p r e v i o u s l y c o n c e p t u a l i z e d a n d b e c a u s e t h e s i g n i f i c a n c e of t h i s d i v e r s i t y c a n not b e a d e q u a t e l y assessed solely t h r o u g h m o r p h o l o g i c a l (or structural) c o m p a r i s o n s of t h e c o n t r a s t i n g l a b o r p r o c e s s e s in r u r a l a r e a s . M o r e s p e c i f i c a l l y , in t h i s c h a p t e r , w e w i l l r e v i e w A s i a ' s r u r a l e m p l o y m e n t s i t u a t i o n , g i v i n g s p e c i a l a t t e n t i o n to i s s u e s of n o n f a r m r u r a l e m p l o y m e n t . W e w i l l a l s o d r a w a t t e n t i o n t o s i g n i f i c a n t l i m i t a t i o n s in u n d e r s t a n d i n g t h e c h a n g i n g c h a r a c t e r i s t i c s of w o r k in r u r a l A s i a , d e r i v e d f r o m

Rural Transformation and the Future of Work

p r o b l e m s within existing theoretical debates about rural and

7

agrarian

c h a n g e . W e will p r o p o s e a p e r s p e c t i v e t h a t v i e w s t r a n s i t i o n in w o r k a s a social, e c o n o m i c , and political p r o c e s s c l o s e l y c o r r e l a t e d b o t h with local p r o c e s s e s involving the c h a n g i n g social s i g n i f i c a n c e of the f a m i l y , c o m m u n i t y , and rural e n t e r p r i s e s a n d w i t h w i d e r p r o c e s s e s

involving

the

c h a n g i n g r e l a t i o n s h i p s b e t w e e n t h e s t a t e a n d t h e e c o n o m i c o r g a n i z a t i o n of r u r a l a r e a s . A n d f i n a l l y , w e w i l l i d e n t i f y a n u m b e r of r e s e a r c h t o p i c s , e m p h a s i z i n g t h e i m p o r t a n c e of o n e i n t e g r a t i n g i s s u e — u n d e r s t a n d i n g

the

p r o c e s s e s a s s o c i a t e d w i t h t h e e v o l u t i o n , m a i n t e n a n c e , a n d c o n s e q u e n c e s of a c o m m i t m e n t by r u r a l i n d i v i d u a l s a n d h o u s e h o l d s t o i d e n t i t i e s t h a t d e f i n e nonagricultural rural w o r k as s o m e t h i n g o t h e r than a t e m p o r a r y attribute.

A s i a ' s Rural E m p l o y m e n t Situation B y 1 9 8 3 , a g r i c u l t u r e a c c o u n t e d f o r m o r e t h a n h a l f of t h e g r o s s d o m e s t i c p r o d u c t ( G D P ) in o n l y t w o A s i a n c o u n t r i e s , B h u t a n a n d N e p a l . T h r o u g h o u t t h e r e g i o n , t h e r e l a t i v e c o n t r i b u t i o n of a g r i c u l t u r e t o G D P is d e c l i n i n g ( F i g u r e 1.1), w h i l e t h e r e l a t i v e c o n t r i b u t i o n s o f m a n u f a c t u r i n g a n d s e r v i c e

Figure 1.1 The Declining Role of Agriculture in Asia, 1960-1988 60

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S O

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4

8

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30

20

10

1960 1964 1968 1972 1976 1980 1984 1988 1962 1966 1970 1974 1978 1982 1986 Year

Bangladesh China

India

Indonesia Malaysia Philippines Thailand

8

Bruce Koppel and John Hawkins

a c t i v i t i e s a r e i n c r e a s i n g ( T a b l e 1.1). H o w e v e r , a c r o s s S o u t h and S o u t h e a s t A s i a , c o n v e n t i o n a l n a t i o n a l d e m o g r a p h i c a n d e m p l o y m e n t statistics s h o w that t h e a g r i c u l t u r e s e c t o r ' s s h a r e of t h e total l a b o r f o r c e c o n t i n u e s to s u b s t a n t i a l l y e x c e e d o n e - h a l f of t h e G D P ( T a b l e 1.2). W h a t t h e s e s t a t i s t i c s d i r e c t l y r e f l e c t is t h e f a c t t h a t e v e n t h o u g h t h e s t r u c t u r e s of A s i a ' s e c o n o m i e s are d i f f e r e n t i a t i n g in d i r e c t i o n s that g i v e i n c r e a s i n g p r o m i n e n c e to m a n u f a c t u r i n g a n d s e r v i c e s , t h e m a j o r i t y of A s i a ' s p e o p l e still l i v e in a r e a s c l a s s i f i e d as " r u r a l " — a n a t t r i b u t i o n r o u t i n e l y a s s u m e d to be e q u i v a lent t o t h e d o m i n a n c e of a g r i c u l t u r a l e c o n o m i c a c t i v i t i e s and a g r a r i a n s o cial o r g a n i z a t i o n . L a b o r f o r c e p a r t i c i p a t i o n , h o w e v e r , is a n o t o r i o u s l y p r o b l e m a t i c c o n cept in d e v e l o p i n g e c o n o m i e s g e n e r a l l y a n d e s p e c i a l l y in a g r a r i a n s e t t i n g s . In a n y c a s e , it is not the s a m e as p r o d u c t i v e e m p l o y m e n t . D e s p i t e s i g n i f i cant i n c r e a s e s in l a n d p r o d u c t i v i t y , t h e a v e r a g e a n n u a l g r o w t h of a g r i c u l tural o u t p u t p e r w o r k e r in A s i a ' s a g r i c u l t u r e c o n t i n u e d b e l o w 2 p e r c e n t in t h e 1 9 8 0 s , not n e a r l y e n o u g h to p r o v i d e p r o d u c t i v e e m p l o y m e n t in a g r i c u l t u r e f o r an e x p a n d i n g r u r a l l a b o r f o r c e n o r to g e n e r a t e the s u r p l u s e s n e e d e d f o r m e a n i n g f u l l e v e l s of s a v i n g s a n d i n v e s t m e n t — h e n c e , h a r d l y e n o u g h to s i g n i f i c a n t l y r e d u c e c o n t i n u i n g p r o b l e m s o f r u r a l p o v e r t y a n d i n e q u a l i t y ( K h a n a n d L e e , 1 9 8 5 ) . In f a c t , a s c a n b e s e e n in T a b l e 1.3, g r o w t h r a t e s in A s i a n a g r i c u l t u r e s h o w e d a t e n d e n c y to s t a g n a t e a n d e v e n d e c l i n e t h r o u g h o u t the later 1 9 8 0 s . A l t h o u g h v a r i a t i o n s r e f l e c t d i f f e r e n c e s in w e a t h e r , p o l i c i e s , e n v i r o n m e n t a l d e g r a d a t i o n , and t e c h n o l o g i c a l i n f r a s t r u c t u r e , there is rising c o n c e r n that g r o w t h rates are s l o w i n g to levels b e l o w t h o s e n e e d e d to m a i n t a i n t h e w e l f a r e of the c o n t e m p o r a r y a g r i c u l t u r a l p o p u l a t i o n a n d , in s o m e c a s e s , to a v o i d j e o p a r d i z i n g f o o d s e c u r i t y f o r t h o s e in v u l n e r a b l e i n c o m e , a g e , a n d g e n d e r g r o u p s in b o t h u r b a n a n d rural a r e a s . C e r t a i n l y , t h e levels of a g r i c u l t u r a l p r o d u c t i v i t y g r o w t h a r e n o t a d e q u a t e to s u p p o r t a p p r e c i a b l e inc r e a s e s in l e v e l s of p r o d u c t i v e e m p l o y m e n t a b s o r p t i o n in a g r i c u l t u r e . R u r a l l a b o r f o r c e s t h r o u g h o u t t h e r e g i o n are g r o w i n g at a n n u a l rates in t h e 3 t o 6 p e r c e n t r a n g e ( E S C A P , 1 9 8 9 : 10), w e l l b e y o n d a g g r e g a t e g r o w t h r a t e s f o r a g r i c u l t u r e a n d real g r o w t h r a t e s of v a l u e - a d d e d in a g r i c u l t u r e ( T a b l e 1.4). A w a r e n e s s of t h e s e i s s u e s h a s g e n e r a t e d g r e a t e r interest in p r o d u c t i v e e m p l o y m e n t in rural a r e a s o u t s i d e a g r i c u l t u r e ( F o n g , 1 9 8 8 ; S h a n d , 1 9 8 6 ) . H o w e v e r , s e v e r a l p r o b l e m s h a v e e m e r g e d that m a k e it d i f f i c u l t to d o c u m e n t t h e e x i s t i n g s c o p e a n d r a t e of g r o w t h of n o n a g r i c u l t u r a l r u r a l e m p l o y m e n t . For e x a m p l e , in an e a r l y o v e r v i e w of the i s s u e s , D e n n i s A n d e r son and Mark Leiserson (1980: 228) point out:

Measurement of rural nonfarm employment is . . . made difficult by the continually changing patterns of employment over the agricultural cycle. Estimates of labor force by economic activity generally provide a

Rural Transformation and the Future of Work

9

c l a s s i f i c a t i o n o f w o r k e r s at a s i n g l e p o i n t in t i m e a c c o r d i n g t o their p r i n c i p a l s e c t o r o f e m p l o y m e n t o r o c c u p a t i o n . T h e y are, t h e r e f o r e , l i k e l y to u n d e r e s t i m a t e the e x t e n t o f n o n f a r m w o r k in rural a r e a s , w h i c h is c o m m o n l y a s e c o n d a r y s o u r c e o f i n c o m e o n a p a r t - t i m e or s e a s o n a l b a s i s .

Most of what is known on this topic, particularly in South and Southeast Asia, c o m e s from income and expenditure surveys. These surveys reveal that large proportions of f a r m h o u s e h o l d i n c o m e (estimates of 30 to 4 0 percent are c o m m o n ) are being attributed to o f f - f a r m sources. However, the surveys tend to concentrate on households that are primarily engaged in agricultural activities. If other h o u s e h o l d s , such as those of landless f a m i l i e s and residents in market t o w n s and villages, were appropriately s a m p l e d , estimated proportions of total rural h o u s e h o l d income derived from nonfarm sources would likely be even higher. For example, the "agric u l t u r a l " category in national e m p l o y m e n t and occupational statistics is very " l u m p y . " This l u m p i n e s s is typically the product of a s a m p l i n g s c h e m e that oversamples agricultural areas, further assumes that all households within these areas are principally agricultural, 3 and finally takes the self-identification of the residential household head (frequently predefined as a male) as the principal occupation of all adults in the household. This obscures considerable work diversification both within and between rural households. For instance, there are increasing n u m b e r s of part-time farmers as well as landless h o u s e h o l d s that are marginal and periodic participants in agricultural labor markets. Indeed, m a n y of the h o u s e h o l d s described in national statistics as "agricultural" are not agricultural at all but are involved in other sectors ( D e o l a l i k a r , 1987; Islam, 1986; M a n g a h a s , 1987; Q u i s u m b i n g and Cruz, 1986). As another example, a World Bank report (1986: x v n ) on employment conditions in Indonesia notes: T h e n u m b e r o f m a n h o u r s s p e n t in the m a j o r a g r i c u l t u r a l labor m a r k e t — r i c e — i s o n l y a s m a l l part o f the total l a b o r t i m e s u p p l i e d to the m a r k e t e v e n b y l a n d l e s s h o u s e h o l d s . T y p i c a l l y the p r o p o r t i o n o f total t i m e u t i l i z e d o n a g r i c u l t u r a l w a g e labor is 3 0 - 4 0 % for l a n d l e s s w o r k e r s . T h e rest o f the l a b o r t i m e is d e v o t e d t o a v a r i e t y o f a c t i v i t i e s in t r a d e , s e r v i c e s , h a n d i c r a f t s , and s o m e t i m e s t o n o n a g r i c u l t u r a l w a g e l a b o r o u t s i d e the villages.

Another World Bank report (1984: 7 - 8 ) makes a complementary point about Bangladesh that has wide applicability throughout rural Asia: Rural p o v e r t y a n d rural w a g e s are s i g n i f i c a n t l y l i n k e d : B e c a u s e o f the h i g h i n c i d e n c e o f l a n d l e s s n e s s a l m o s t h a l f the rural p o p u l a t i o n d e p e n d o n w o r k o f f their o w n land. A g r i c u l t u r a l labor is g e n e r a l l y e m p l o y e d for 1 8 5 d a y s per w o r k e r year, i n c l u d i n g 1 1 5 d a y s in c r o p p r o d u c t i o n and 7 0 d a y s in o t h e r a l l i e d a c t i v i t i e s . A c c o r d i n g l y t h e y n e e d e i t h e r h i g h w a g e s f o r

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d i r e c t l y to t h e p e a s a n t s a n d in the i n t e r e s t of i m p r o v i n g a g r i c u l t u r a l prod u c t i v i t y (RMRB, 1987, M a r c h 2 3 , a n d 1 9 8 6 , April 2 6 ) . 2

Problem of Farmland Consolidation In a d d i t i o n to u s i n g p r o f i t s f r o m t o w n s h i p a n d v i l l a g e e n t e r p r i s e s to s u b s i d i z e a g r i c u l t u r e , the c e n t r a l p o l i c y m a k e r s a r e a l s o l o o k i n g to t h e d e v e l o p m e n t of rural n o n f a r m a c t i v i t i e s to h e l p d e v e l o p the a g r i c u l t u r a l s e c t o r in a n o t h e r m a n n e r . By p e r m i t t i n g a n d a c t u a l l y u r g i n g t h o s e w h o a r e less e f f i c i e n t in c u l t i v a t i o n but o t h e r w i s e s k i l l f u l in n o n f a r m t r a d e s to g i v e u p t h e i r land, p l a n n e r s h o p e to s e e a c o n s o l i d a t i o n of f a r m l a n d i n t o t h e h a n d s of f e w e r b u t m o r e e f f i c i e n t f a r m e r s . W h e n s m a l l e r p i e c e s of f a r m l a n d are c o n s o l i d a t e d into l a r g e r p a r c e l s , a g r i c u l t u r a l p r o d u c t i v i t y c a n b e r a i s e d t h r o u g h t h e use of a g r i c u l t u r a l m a c h i n e r y a n d o t h e r l a r g e - s c a l e f a r m i n g techniques. It is very rare to see an e n t i r e h o u s e h o l d l e a v i n g the land, h o w e v e r . In a l m o s t all i n s t a n c e s , it is t h e a b l e - b o d i e d m e m b e r s of a f a m i l y w h o l e a v e farming for nonfarm jobs (Mei Tai-he and Ding Zhao-xiang, 1984). The r e a l i t y is that a l t h o u g h m a n y rural l a b o r e r s m a y e n t i r e l y g i v e u p f a r m i n g f o r n o n f a r m e m p l o y m e n t , v e r y o f t e n t h e y r e t a i n t h e i r title to p a r t s or all of t h e i r c o n t r a c t e d f a r m l a n d . T h e y u s u a l l y a s k their n o n - " / f tu" f a m i l y m e m b e r s a n d r e l a t i v e s to h e l p c u l t i v a t e t h e i r l a n d . D u r i n g t h e b u s y h a r vesting and planting seasons, they may temporarily leave their n o n f a r m p o s i t i o n s to r e t u r n to w o r k a l o n g s i d e t h e i r f a m i l i e s in t h e f i e l d ( F i e l d n o t e s , 1985). In the rural a r e a s , t h e r e f o r e , a s u b s t a n t i a l n u m b e r of h o u s e h o l d s a r e c o n c u r r e n t l y i n v o l v e d in a g r i c u l t u r e a n d i n d u s t r y or o t h e r t r a d e s . A 1 9 8 4 s t u d y of f o u r v i l l a g e s in W u j i a n g C o u n t y , a m o r e d e v e l o p e d part of J i a n g s u P r o v i n c e , f o r e x a m p l e , s h o w e d that b e t w e e n 4 4 . 3 p e r c e n t and 6 9 . 7 p e r c e n t of the h o u s e h o l d s in f o u r v i l l a g e s w e r e c o n c u r r e n t l y e n g a g e d in f a r m and n o n f a r m a c t i v i t i e s ( Z h a n g Y u - l i n , 1 9 8 6 b : 1 8 1 - 1 8 2 ) . T o e x p l a i n this issue f u r t h e r , w e n e e d to u n d e r s t a n d that f o r d i s t r i b u tion p u r p o s e s , f a r m l a n d is d i v i d e d i n t o t h r e e c a t e g o r i e s : ( 1 ) f o o d g r a i n f i e l d s ( k o u l i a n g tian), (2) r e s p o n s i b i l i t y f i e l d s ( z e r e n tian), a n d ( 3 ) f o d d e r f i e l d s ( s i l i a o tian). F o o d grain f i e l d s are d i s t r i b u t e d o n a per c a p i t a b a s i s to e a c h h o u s e h o l d , a n d the p r o d u c t s f r o m t h e s e f i e l d s are r e t a i n e d by the h o u s e h o l d s f o r their o w n c o n s u m p t i o n r e q u i r e m e n t s . R e s p o n s i b i l i t y f i e l d s a r e a s s i g n e d to e a c h h o u s e h o l d , a c c o r d i n g to the n u m b e r of a b l e - b o d i e d lab o r e r s in each f a m i l y . T h e o u t p u t f r o m t h e s e f i e l d s is w h a t the p e a s a n t s are o b l i g a t e d to p r o d u c e f o r t h e s t a t e . F o d d e r f i e l d s a r e d i s t r i b u t e d to t h o s e h o u s e h o l d s w h o k e e p l i v e s t o c k ( W a n g G u o - x i a n g , 1986: 2 1 ) . It is o b v i o u s that e a c h h o u s e h o l d will try to o b t a i n as m a n y f o o d grain f i e l d s as p o s s i b l e t o e n s u r e an a d e q u a t e f o o d s u p p l y f o r e v e r y o n e in t h e f a m i l y . F o r r e a s o n s d i s c u s s e d later, m a n y r u r a l l a b o r e r s a r e t r y i n g to

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c o n t r a c t as little r e s p o n s i b i l i t y land as the s t a t e will a l l o w , a n d a l m o s t all rural h o u s e h o l d s k e e p s o m e l i v e s t o c k a n d t h u s r e c e i v e a s h a r e of the f o d d e r land. T h e r e f o r e , o n e of the i n e v i t a b l e c o n s e q u e n c e s of d i s t r i b u t i n g land in this f a s h i o n is the t e n d e n c y to e q u a l i z e t h e s h a r e of l a n d c o n t r a c t e d by e a c h h o u s e h o l d . A c c o r d i n g to s e v e r a l C h i n e s e r e s e a r c h e r s , this p h e n o m e n o n has b e e n o b s e r v e d o n a w i d e n i n g s c a l e in the rural a r e a s ( W a n g G u o x i a n g , 1 9 8 6 : 21; Y a n g Yi, 1 9 8 5 b : 2 ) .

Two Major Tendencies T w o m a j o r u n i n t e n d e d c o n s e q u e n c e s of rural n o n f a r m d e v e l o p m e n t h a v e a r i s e n in rural C h i n a : ( 1 ) the t e n d e n c y of m o r e a n d m o r e i n d i v i d u a l rural l a b o r e r s a n d h o u s e h o l d s to be c o n c u r r e n t l y e n g a g e d in f a r m a n d n o n f a r m w o r k , a n d (2) the t e n d e n c y to e q u a l i z e the s h a r e of land c o n t r a c t e d by e a c h h o u s e h o l d ( D o n g H a n - y i n g , 1986: 5 2 ) . T h e s e a r e , of c o u r s e , c o n t r a r y to t h e o r i g i n a l i n t e n t i o n s of the c e n t r a l p l a n n e r s , w h o w a n t e d to e n c o u r a g e an e x o d u s of t h e l e s s - e f f i c i e n t w o r k e r s f r o m the l a n d into the rural n o n f a r m s e c t o r a n d a c o n s o l i d a t i o n of l a r g e r p i e c e s of f a r m l a n d into t h e h a n d s of f e w e r b u t m o r e e f f i c i e n t p r o d u c e r s . T h e p l a n n e r s e n v i s i o n e d a d i v i s i o n of labor in the rural a r e a s , w h e r e f a r m ers and n o n f a r m workers w o u l d both increase their productivity through s p e c i a l i z a t i o n a n d c o m m e r c i a l i z a t i o n , but t h e c u r r e n t s i t u a t i o n i n d i c a t e s that they a p p a r e n t l y did not f u l l y a n t i c i p a t e the c o n c e r n s of t h e p e a s a n t s . T h e y h a v e a l s o f a i l e d to c o n s i d e r t h o r o u g h l y the p o l i c y ' s i m p l i c a t i o n s f o r the rural s e c t o r a n d a g r i c u l t u r e . T h e r e l e v a n t q u e s t i o n h e r e is this: W h y d o e s a rural w o r k e r w h o h a s a f u l l - t i m e n o n f a r m o c c u p a t i o n still w a n t to m a i n t a i n a s h a r e of the f a r m l a n d ? S o m e a n a l y s t s b e l i e v e that the traditional c o n s e r v a t i s m of the p e a s a n t s has p r e v e n t e d t h e m f r o m g i v i n g u p their c o n t r a c t e d f a r m l a n d , w h i c h m a n y c o n s i d e r their private p r o p e r t y ( M u H o n g - t a o , 1985: 7). A l t h o u g h this m a y be true, t h e r e are s e v e r a l real e c o n o m i c c o n c e r n s that h e a v i l y i n f l u e n c e a rural w o r k e r ' s d e c i s i o n to k e e p a p i e c e of f a r m l a n d , w h i l e at the s a m e t i m e opting for a nonfarm job. First, a rural l a b o r e r w h o w o r k s in the rural n o n f a r m s e c t o r is, in a l m o s t all i n s t a n c e s , a p e a s a n t - w o r k e r w h o is r e q u i r e d by law to m a i n t a i n his or h e r a g r i c u l t u r a l h o u s e h o l d s t a t u s . T h i s m e a n s t h a t he or s h e is not entitled to r e c e i v e s u b s i d i z e d c o m m o d i t y g r a i n a n d o t h e r s u b s i d i z e d u r b a n rations f r o m t h e state. T h u s , to e n s u r e an a d e q u a t e a n d s t a b l e f o o d s u p p l y , the p e a s a n t - w o r k e r n a t u r a l l y w a n t s to k e e p a s h a r e of t h e f o o d g r a i n l a n d . In t h e last s e v e r a l y e a r s , f o o d g r a i n has o n c e a g a i n b e c o m e a v a i l a b l e on the m a r k e t . O n e m i g h t e x p e c t that b e c a u s e t h e p e a s a n t - w o r k e r s c a n n o w b u y t h e i r f o o d g r a i n s f r o m t h e m a r k e t , t h e i r n e e d f o r f a r m l a n d will d i m i n i s h . In s o m e localities, " m a r k e t grain s u p p l y c e r t i f i c a t e s " w e r e i s s u e d

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t o t h e li tu p e a s a n t s a s a w a y t o g u a r a n t e e t h e i r f o o d s u p p l y ( C h i n e s e C o m m u n i s t P a r t y Y u n n a n P r o v i n c e , 1 9 8 3 : 6 2 ) . T h e p r o b l e m , h o w e v e r , is that t h e s u p p l y of m a r k e t g r a i n is o f t e n u n r e l i a b l e , a n d t h e p r i c e is m o r e t h a n d o u b l e t h a t of t h e s t a t e ' s c o m m o d i t y g r a i n ( M u H o n g - t a o , 1 9 8 5 : 7). T h i s o n l y r e i n f o r c e s t h e p e a s a n t - w o r k e r s ' d e t e r m i n a t i o n to h o l d on t o t h e i r l a n d . S e c o n d , a c l a i m to p a r t o r all of h i s o r h e r c o n t r a c t e d f a r m l a n d i n s u r e s a p e a s a n t a g a i n s t a n y u n e x p e c t e d d o w n t u r n s in n o n f a r m e n d e a v o r s . T h e p e a s a n t - w o r k e r s are fully a w a r e that the rural n o n f a r m sector, unlike the state sector, d o e s not g u a r a n t e e stable i n c o m e or y e a r l o n g e m p l o y m e n t . T h e r e f o r e , they a r e naturally c o n s e r v a t i v e a n d a r e r e l u c t a n t to s e v e r all of their ties to t h e land ( W a n g G u o - x i a n g , 1 9 8 6 : 2 2 - 2 3 ; X u J i n g - y o n g , 1 9 8 4 : 55). T h i r d , t h e n o n - / / tu m e m b e r s o f a h o u s e h o l d a r e g e n e r a l l y c a p a b l e of c u l t i v a t i n g t h e e x t r a l a n d k e p t b y t h e li tu m e m b e r s . T h e y d o n o t c o n s i d e r t h e e x t r a l a n d u n m a n a g e a b l e . T h i s is b e c a u s e o n e r e s u l t of t h e e q u a l i z a t i o n of l a n d d i s t r i b u t i o n is a l o w l a n d - t o - l a b o r r a t i o . T h e a v e r a g e s i z e of l a n d c o n t r a c t e d by e a c h h o u s e h o l d is c u r r e n t l y r e c o r d e d at a b o u t 8 m u , w h i c h is a c o m p a r a t i v e l y l o w f i g u r e by b o t h w o r l d s t a n d a r d s a n d C h i n a ' s o w n ( L i u G a n g , 1 9 8 6 : 7). T h e r e f o r e , e v e n t h o u g h t h e n o n - l i tu m e m b e r s a r e u s u a l l y t h e e l d e r l y , t h e w o m e n , a n d t h e y o u n g , t h e y a r e still a b l e to a t t e n d to t h e f a r m i n g n e e d s of t h e e n t i r e h o u s e h o l d ( S h a n Y o n g - t a n g et a l . , 1 9 8 4 : 3 7 ; Y a n g Yi, 1 9 8 5 a : 4 0 ) . In o t h e r w o r d s , m a i n t a i n i n g a d d i t i o n a l s h a r e s of t h e l a n d is n o t a g r e a t e x t r a b u r d e n o n t h e f a m i l y m e m b e r s of t h e li tu p e a s a n t s . P e a s a n t - w o r k e r s a n d t h e i r f a m i l i e s as w e l l d o n o t s e e a n y d i s a d v a n t a g e in r e t a i n i n g s h a r e s of t h e l a n d . F o u r t h , s u b s i d i e s d e r i v e d f r o m t h e p r o f i t s of r u r a l i n d u s t r i e s h a d p r e v i o u s l y b e e n d i v e r t e d to t h e a g r i c u l t u r a l s e c t o r to h e l p it d e v e l o p . S i n c e t h e e s t a b l i s h m e n t of t h e h o u s e h o l d r e s p o n s i b i l i t y s y s t e m , t h e s e s u b s i d i e s h a v e b e e n d i s t r i b u t e d to t h e p e a s a n t s a c c o r d i n g to t h e s i z e o f t h e i r c o n tracted responsibility land. A l t h o u g h f a r m i n g the responsibility land repr e s e n t s a d r a i n o n t h e p e a s a n t s ' r e s o u r c e s , t h e f i n a n c i a l s u b s i d i e s , in m a n y circumstances, have turned f a r m i n g into a marginally profitable business ( C h e n S h e n g , 1986: 33). T h u s , the first three factors explain the motivat i o n s b e h i n d t h e li tu p e a s a n t s ' d e t e r m i n a t i o n t o k e e p t h e i r f o o d g r a i n l a n d , a n d t h e last f a c t o r e x p l a i n s t h e i r d e c i s i o n to k e e p t h e i r r e s p o n s i b i l i t y l a n d . A l l of t h e s e f a c t o r s h a v e e f f e c t i v e l y p e r s u a d e d t h e li tu p e a s a n t s to hold on to their s h a r e s of the land. A s a result, t w o u n i n t e n d e d c o n s e q u e n c e s f o r t h e a g r i c u l t u r a l e c o n o m y h a v e e m e r g e d . O n e is t h a t t h e a v e r a g e h o u s e h o l d is n o w p r i m a r i l y i n t e r e s t e d in s m a l l - s c a l e , s e l f - s u f f i c i e n t p r o d u c t i o n . T h a t is, e a c h h o u s e h o l d w o r k s o n s e v e r a l s m a l l p i e c e s of f a r m l a n d , a n d its p r o d u c t i o n is p r i m a r i l y g e a r e d t o w a r d s a t i s f y i n g t h e f o o d c o n s u m p t i o n n e e d s of its m e m b e r s . A n o t h e r u n a n t i c i p a t e d c o n s e q u e n c e is that a n o v e r w h e l m i n g m a j o r i t y of t h e r u r a l h o u s e h o l d s a r e n o w c o n c u r r e n t l y e n g a g e d in f a r m a n d n o n f a r m w o r k . In m a n y c a s e s , n o n f a r m w o r k h a s b e c o m e t h e p r i m a r y s o u r c e of i n c o m e f o r t h e r u r a l h o u s e h o l d s .

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Effects on Agriculture The two unanticipated t e n d e n c i e s in the agricultural e c o n o m y have had several negative e f f e c t s on agriculture. First, with small and scattered parcels of land contracted by different households, e c o n o m i e s of scale in agricultural production are not realized. Because land is not being consolidated into the hands of full-time producers, the condition needed for the mechanization, specialization, and commercialization of f a r m production is not achieved (Chen Sheng, 1986: 33; Sun Han, 1986: 10). According to one analyst, if the size of a h o u s e h o l d ' s farmland is less than 20 mu, then the investment cost of using a small tractor alone is about 150 yuan per mu (Liu Gang, 1986: 7). C o n s i d e r i n g the fact that the average household works on about 8 mu of land and that the land is made up of small pieces scattered in different locations (RMRB, 1987, October 23), such a cost figure means that agricultural m e c h a n i z a t i o n is entirely out of the question for the majority of the f a r m i n g households. Second, the satisfaction of their own consumption needs has b e c o m e the top priority of most agricultural producers. They are increasingly disinterested in f u l f i l l i n g their obligations for the s t a t e ' s grain procurement quota (Yang Yi, 1985a: 40). This may stem from the traditional mentality of self-sufficiency characterizing the small-scale producer, as some people have suggested ( W a n g Guo-xiang, 1986: 23), but it is more likely that the decline in producing and supplying commodity grain to the state is the result of rural h o u s e h o l d s and laborers concurrently e n g a g i n g in farm and nonfarm work. In areas where the rural nonfarm sector has flourished, proceeds from farm activities may constitute only 10 to 20 percent of a rural household's total cash income ( Y a n g Yi, 1985a: 40). For many peasant-workers, f a r m i n g has b e c o m e a "sideline" business and a s e c o n d a r y income s o u r c e ( H u a n g H u a n - z h o n g and Sun Xin-ya, 1986: 46). Because many peasants now derive their primary income f r o m outside agriculture, the immediate objective of farming thus becomes that of fulfilling their own consumption requirements. As a result, peasants' interests in cultivation and their investment in agricultural production have both declined. In some localities, farmland has even been partly or totally abandoned by peasants w h o find n o n f a r m work substantially more lucrative (Liu R o n g - q i n , 1987: 46; Shi Fu-yuen, 1986: 1 8 - 1 9 ) . A study of Langfang Region, Hubei Province, showed that 5 percent of the r e g i o n ' s farmland were a b a n d o n e d and that about 20 to 50 percent of the rural households were neglecting their f a r m i n g duties (Cao M e n g - j i a o and Liu Zong-xiao, 1987: 32). Third, there is a n o t e w o r t h y characteristic now c o m m o n l y f o u n d in households that are involved in both farm and nonfarm activities. Because it is generally the male adult and the more skillful, a b l e - b o d i e d laborers who are hired away by rural n o n f a r m enterprises, agricultural growth in-

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e v i t a b l y s u f f e r e d as the a v e r a g e level of c o m p e t e n c e of the r e m a i n i n g n o n - / / tu agricultural work f o r c e d e c l i n e d ( X i o n g C h e n g - j i a , 1986: 57; Liu F u - c h e n and G u o W e i - g u o , 1985: 18). Finally, there is an a l a r m i n g p h e n o m e n o n that is closely l i n k e d to the p r e v i o u s a r g u m e n t . One of the original g o a l s of the central p l a n n e r s w a s to see a c o n s o l i d a t i o n of land into the h a n d s of s k i l l f u l , f u l l - t i m e f a r m e r s , but i n c r e a s i n g l y , e v e n this g r o u p of s p e c i a l i z e d rural l a b o r e r s h a s b e g u n ent e r i n g the n o n f a r m sector (Li Jian-de, 1986: 35). On the o n e h a n d , they realize that they p o s s e s s the k n o w l e d g e and skills to m a k e an o c c u p a t i o n a l t r a n s i t i o n as well as s e c u r e a m u c h h i g h e r return f r o m n o n f a r m w o r k . In m a n y a r e a s , rural l a b o r e r s can d o u b l e or e v e n triple their e a r n i n g s by s w i t c h i n g to construction or m i n i n g j o b s ( Z h a o Hing-han, 1986: 27; C h e n g Lu, 1987: 85). On the other hand, they see persistent o b s t a c l e s in c o n s o l i d a t i n g m o r e f a r m l a n d into their h a n d s than they h a v e a n t i c i p a t e d . For a m a j o r i t y of these skillful p e a s a n t s , the logical c o n c l u s i o n is, t h e r e f o r e , to join their n e i g h b o r s and enter the rural n o n f a r m sector. In c o n c l u s i o n , m a n y p e a s a n t s h a v e o n l y n o m i n a l l y left their land: Rural w o r k e r s m a y h a v e taken u p n o n f a r m p o s i t i o n s , but t h e y h a v e not given up their land. T h i s has greatly h i n d e r e d o n e of the h i g h e r o b j e c t i v e s of rural n o n f a r m d e v e l o p m e n t — t h e c o n s o l i d a t i o n and t r a n s f e r o f f a r m l a n d to s p e c i a l i z e d f a r m e r s . B e c a u s e land c o n t i n u e s to be e v e n l y d i s t r i b u t e d a m o n g most h o u s e h o l d s and b e c a u s e most h o u s e h o l d s are c o n c u r r e n t l y eng a g e d in f a r m a n d n o n f a r m w o r k , the i m p l i c a t i o n s f o r a g r i c u l t u r e are largely d i s c o u r a g i n g .

Problem of Farmland Subleasing T h e e x t r e m e l y low rate of f a r m l a n d s u b l e a s i n g has been d o c u m e n t e d in several i n s t a n c e s . A s u r v e y study in E z h o u City of H u b e i P r o v i n c e reported that in 1983, only 3 percent of the c i t y ' s agricultural l a n d w a s subc o n t r a c t e d , i n v o l v i n g only 5 p e r c e n t of all the a g r i c u l t u r a l h o u s e h o l d s ( W a n g X i n g - l o n g , 1984: 24). In B a n g s h a n C o m m u n e , L o n g h a i C o u n t y , F u j i a n P r o v i n c e , out of a total of 1,695 s p e c i a l i z e d rural n o n f a r m h o u s e h o l d s , only 9 h a d s u b l e a s e d their land to o t h e r f a r m e r s ( X u J i n g - y o n g , 1984: 55). A n o t h e r s u r v e y c o n d u c t e d in G u d i a n z i T o w n s h i p of Jilin P r o v i n c e r e c o r d e d that in 1983, w h e n f a r m l a n d s u b l e a s i n g w a s first practiced, only 7 h o u s e h o l d s out of a total of 5 , 9 6 5 w e r e i n v o l v e d in such an a c t i v i t y . A y e a r later, in 1984, the n u m b e r of h o u s e h o l d s that h a d s u b leased their land j u m p e d to 36, w h i c h w a s still a very small part of all the h o u s e h o l d s in that t o w n s h i p ( Z h a o J u n - x i a n g , 1985: 40). T h e hesitation of f u l l - t i m e f a r m e r s to accept m o r e land h a s also been r e c o r d e d in t w o s u r v e y s t u d i e s . In 1985, a s u r v e y of 100 rural h o u s e h o l d s in X i a o s h a n C o u n t y , Z h e j i a n g P r o v i n c e s h o w e d that o n l y 1 p e r c e n t of

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t h o s e i n t e r v i e w e d w e r e w i l l i n g to l e a s e m o r e l a n d f r o m t h e o t h e r s ( W u Z h i h u a a n d M e n g Z h i - x i a n , 1 9 8 5 : 5 4 ) . In 1 9 8 6 , a s u r v e y of 173 r u r a l h o u s e h o l d s in F e n g c i T o w n s h i p , N a n h a i C o u n t y , G u a n g d o n g P r o v i n c e , rep o r t e d that o n l y 2 p e r c e n t of t h o s e q u e s t i o n e d w e r e w i l l i n g to t a k e o n m o r e land. O n l y 8 p e r c e n t in the s a m e s t u d y s a i d that they w e r e w i l l i n g to s u b l e a s e their l a n d , a n d an o v e r w h e l m i n g 9 0 p e r c e n t e x p r e s s e d n o interest in e i t h e r r e d u c i n g o r e x p a n d i n g their l a n d h o l d i n g s (Li Z h o n g , 1987: 4 6 ) . B e f o r e I d i s c u s s t h e r e a s o n s b e h i n d t h e r e l u c t a n c e of t h e f u l l - t i m e f a r m e r s to a c c e p t m o r e land, it is i n s t r u m e n t a l to u n d e r s t a n d the p r e v a i l i n g a r r a n g e m e n t s of f a r m l a n d s u b c o n t r a c t i n g . T h e r e a r e b a s i c a l l y t w o k i n d s of arrangement: subcontracting without compensation and subcontracting with compensation. U n d e r the first kind of a r r a n g e m e n t , the l e a s e h o l d e r t u r n s o v e r his or her land to the l e s s e e with o n l y o n e c o n d i t i o n : T h e l e s s e e will fulfill all the o b l i g a t i o n s as s p e c i f i e d in t h e o r i g i n a l c o n t r a c t b e t w e e n t h e l e a s e h o l d e r a n d the g o v e r n m e n t . In g e n e r a l , t h i s m e a n s that t h e l e s s e e will m e e t t h e s t a t e g r a i n p r o c u r e m e n t q u o t a a n d p a y t a x e s to local a u t h o r i t i e s , as p r e s c r i b e d in the o r i g i n a l c o n t r a c t . A s i d e f r o m t h i s r e q u i r e m e n t , the l e s s e e d o e s not h a v e to c o m p e n s a t e , in any m a n n e r , t h e o r i g i n a l c o n t r a c t o r (Lu H o u - d a a n d C h e n H o n g - e r , 1984: 9). T h e s e c o n d k i n d of a r r a n g e m e n t — s u b c o n t r a c t i n g w i t h c o m p e n s a t i o n — r e q u i r e s t h e l e s s e e to f u l f i l l e x t r a r e q u i r e m e n t s . In a d d i t i o n to the t e r m s of the o r i g i n a l c o n t r a c t , the l e s s e e will h a v e to c o m p e n s a t e the o r i g inal l e a s e h o l d e r in three m a j o r w a y s : 1.

2.

3.

C o m p e n s a t i o n by s u p p l y i n g f o o d s t u f f s . T h e l e s s e e will e i t h e r g u a r a n t e e to s u p p l y l o w - p r i c e d f o o d g r a i n s or e n s u r e t h e s u p p l y of a s p e c i f i c a m o u n t of f o o d g r a i n s , f r e e of c h a r g e , to the o r i g i n a l l e a s e h o l d e r . T h e latter m a y a l s o s o m e t i m e s r e q u e s t an a d d i t i o n a l s u p p l y of o t h e r a g r i c u l t u r a l p r o d u c t s , s u c h as f r e s h v e g e t a b l e s (Lu H o u - d a a n d C h e n H o n g - e r , 1984: 9). C o m p e n s a t i o n by p a y i n g c a s h . T h e l e s s e e will turn o v e r a part of h i s or h e r e x t r a i n c o m e d e r i v e d f r o m the t r a n s f e r r e d land to t h e o r i g i n a l l e a s e h o l d e r . In o n e s t u d y c o n d u c t e d in G u d i a n z i T o w n s h i p of Jilin P r o v i n c e , the o r i g i n a l c o n t r a c t o r s t o o k 2 6 . 4 to 5 1 . 3 p e r c e n t of the l e s s e e s ' i n c o m e ( Z h a o J u n - x i a n g , 1 9 8 5 : 4 1 ) . C o m p e n s a t i o n by c o n t r i b u t i n g l a b o r . In s o m e i n s t a n c e s , c e r t a i n h o u s e h o l d s that a r e s h o r t of a b l e - b o d i e d l a b o r e r s m a y k e e p o n l y p a r t s of t h e i r l a n d a n d s u b l e a s e the r e s t . T h e l e s s e e , in this c a s e , will h e l p t h e o r i g i n a l l e a s e h o l d e r to c u l t i v a t e t h a t part of t h e l a n d that is still kept by the latter (Li Z h o n g - x i a n , 1 9 8 5 : 3 8 ) . T h e a v a i l a b l e d a t a s h o w that an o v e r w h e l m i n g m a j o r i t y of t h o s e h o u s e h o l d s that a r e w i l l i n g to s u b l e a s e t h e i r l a n d h a v e a s k e d f o r s o m e f o r m s of c o m p e n s a t i o n f r o m t h e l e s s e e s ( Z h a o Z h i - y u a n et al., 1985: 4 6 ) .

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Yok-shiu F. Lee

In 1 9 8 5 in Y i n g s h a n C o u n t y , S h a n x i P r o v i n c e , f o r i n s t a n c e , c l o s e t o 9 0 p e r c e n t of all t h e l a n d s u b l e a s i n g c a s e s i n v o l v e d c o m p e n s a tion (Li Z h o n g - x i a n ,

1985: 3 7 ) . M o r e o v e r , the m a j o r i t y of

the

l e a s e h o l d e r s w o u l d l e a s e o u t p a r t s b u t n o t all of t h e i r l a n d . It s h o u l d also be m a d e clear that l e a s e h o l d e r s are not r e l i n q u i s h i n g t h e l e g a l title t o t h e i r c o n t r a c t e d l a n d . T h e y a r e o n l y t r a n s f e r r i n g t o the lessees, usually on an annual basis but s o m e t i m e s on a seasonal basis, the right to cultivate the land (Li S h e n g - w e n , 1987: 39). W h y do most land transfer cases require c o m p e n s a t i o n ? Most leaseh o l d e r s , f o r a v a r i e t y of r e a s o n s , a r e n o t k e e n o n s u b l e a s i n g t h e i r l a n d . O n e of t h e m a j o r r e a s o n s is t h a t t h e y w a n t t o a s s u r e t h e m s e l v e s a s t a b l e a n d ine x p e n s i v e s u p p l y of f o o d g r a i n s f r o m t h e i r o w n p r o p e r t y . B e c a u s e t h e s u b l e a s e d l a n d is, t o t h e l e a s e h o l d e r s , a n i m p o r t a n t s o u r c e of l o w - c o s t f o o d g r a i n s , it is u n d e r s t a n d a b l e t h a t , in a l m o s t all i n s t a n c e s , t h e l e s s e e s a r e a s k e d to g u a r a n t e e t h e f o r m e r a n i n e x p e n s i v e o r s o m e t i m e s f r e e f o o d s u p p l y ( L i Z h o n g - x i a n , 1 9 8 5 : 3 7 ; Z h o u Q i - r e n et a l . , 1 9 8 5 : 1 5 ) . T h e l e a s e holders m a y also require c o m p e n s a t i o n b e c a u s e they want to r e c o u p their p r e v i o u s i n v e s t m e n t (in i n f r a s t r u c t u r e , f e r t i l i z e r , e t c . ) in m a k i n g t h e l a n d productive. T h e r e a r e , to b e s u r e , o n g o i n g d e b a t e s o n t h e e x t r a n a t u r e of t h i s k i n d of c o m p e n s a t i o n b e c a u s e it h a s a c l e a r c o n n e c t i o n to s e n s i t i v e i s s u e s l i k e e x p l o i t a t i o n a n d l a n d o w n e r s h i p . S u p p o r t e r s f o r t h i s k i n d of a r r a n g e m e n t p o i n t o u t t h a t s u c h c o m p e n s a t i o n g r e a t l y f a c i l i t a t e s t h e p r o c e s s of t r a n s f e r r i n g f a r m l a n d . M o r e o v e r , b e c a u s e the a r r a n g e m e n t has to be a mutual a g r e e m e n t a n d b o t h p a r t i e s m u s t g a i n f r o m it, s u p p o r t e r s b e l i e v e t h e p r a c t i c e s h o u l d b e s a n c t i o n e d a n d e x t e n s i v e l y p r o m o t e d ( Z h a o Z h i - y u a n et al., 1 9 8 5 : 4 6 : Li Z h o n g - x i a n , 1 9 8 5 : 3 8 ) . C r i t i c s , o n t h e o t h e r h a n d , a r e q u i c k to c h a l l e n g e t h e l e g i t i m a c y of t h i s t y p e o f c o m p e n s a t i o n . T h e y q u e s t i o n w h e t h e r s u c h c o m p e n s a t i o n c o n s t i t u t e s a f o r m of e x p l o i t a t i o n b y t h e l e a s e holders and w h e t h e r the c o m p e n s a t i o n s h o u l d go to the collective, w h i c h is t h e l e g a l o w n e r of a g r i c u l t u r a l l a n d ( Z h a o J u n - x i a n g , 1 9 8 5 : 4 2 - 4 4 ) . A l t h o u g h t h e l e g i t i m a c y of c o m p e n s a t i o n in l a n d s u b c o n t r a c t i n g is an i m p o r t a n t i s s u e t o a n a l y z e , t o g o f u r t h e r i n t o it is b e y o n d t h e s c o p e of t h i s c h a p t e r . T h e r e l e v a n t q u e s t i o n h e r e is: W h y a r e f u l l - t i m e f a r m e r s u n w i l l i n g to i n c r e a s e t h e i r l a n d h o l d i n g s ? It is n a t u r a l to b e l i e v e t h a t m o s t f a r m e r s a r e n o t i n t e r e s t e d in l e a s i n g m o r e l a n d b e c a u s e t h e y r e f u s e t o s h o u l d e r t h e b u r d e n of c o m p e n s a t i o n . W h a t is i n t r i g u i n g h e r e is t h a t e v e n w h e n t h e l e a s e h o l d e r s a r e w i l l i n g t o s u b l e a s e t h e i r l a n d w i t h o u t a s k i n g f o r c o m p e n s a t i o n , it is still v e r y d i f f i cult to f i n d s o m e o n e w h o w o u l d a g r e e to t a k e on m o r e land ( Y a n g Yi, 1985a: 40). In t h i s r e g a r d , it is p e r t i n e n t t o r e c a l l t h a t w h e n s o m e o n e s u b c o n t r a c t s a p i e c e of l a n d f r o m a l e a s e h o l d e r " w i t h o u t c o m p e n s a t i o n , " t h e f o r m e r still

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m u s t satisfy the l a t t e r ' s tax o b l i g a t i o n s to the central a n d local authorities. T h e lessee will f u l f i l l the grain p r o c u r e m e n t q u o t a to the central g o v e r n m e n t , and he or she will pay local t a x e s a n d o t h e r f e e s to the local o f f i c i a l s ( W u X i a n g - y u , 1986: 27). T h u s , the m a i n o b s t a c l e that d i s c o u r a g e s f u l l t i m e f a r m e r s f r o m a c q u i r i n g a d d i t i o n a l l a n d , e v e n w h e n c o m p e n s a t i o n is not d e m a n d e d , is that the e c o n o m i c b u r d e n of these g o v e r n m e n t levies has o u t w e i g h e d the gains f r o m c u l t i v a t i n g a larger f a r m . T h e a m o u n t of a p e a s a n t ' s tax p a y m e n t is, by a n d large, c a l c u l a t e d on the b a s i s of the size of his or her f a r m l a n d ( Z h o u D e - z h e n g et al., 1984: 18). If o n e a c q u i r e s m o r e land, o n e ' s tax a s s e s s m e n t a l s o i n c r e a s e s , reg a r d l e s s of w h e t h e r o n e ' s i n c o m e has a c t u a l l y b e c o m e larger or s m a l l e r . C o m p a r e d with the fixed i n c o m e tax rate of the n o n a g r i c u l t u r a l sector, the p r o g r e s s i v e land tax in the agricultural s e c t o r thus m a k e s large-scale prod u c t i o n very unattractive to f u l l - t i m e f a r m e r s . T o t h e m , f a r m i n g m o r e land s i m p l y translates into b e a r i n g a higher but u n j u s t i f i a b l e financial b u r d e n . T h a t b u r d e n has t w o m a j o r c o m p o n e n t s : ( 1 ) a low state grain p r o c u r e m e n t price, d e s p i t e rising p r o d u c t i o n c o s t s ( R M R B , 1987, N o v e m b e r 14), a n d ( 2 ) the r i s i n g level of local l e v i e s . First, a l t h o u g h m o s t inputs into a g r i c u l t u r a l p r o d u c t i o n h a v e b e c o m e m o r e e x p e n s i v e s i n c e 1980, the s t a t e ' s grain p r o c u r e m e n t price has not b e e n r a i s e d high e n o u g h to f u l l y c o v e r the i n c r e a s e d cost of p r o d u c t i o n ( R M R B (OE), 1986, J a n u a r y 6; Z h a n g W e n - h u i , 1986: 58). For instance, in 1986, w h e n it cost 0 . 2 6 yuan to p r o d u c e 1 jin of grain in Y u n n a n P r o v i n c e , the state p r o c u r e m e n t price w a s set at 0 . 1 6 2 yuan per j i n . G r a i n c u l t i v a t i o n has, t h e r e f o r e , b e c o m e a marginally p r o f i t a b l e or even m o n e y - l o s i n g b u s i n e s s . F a r m e r s m a n d a t e d to sell their g r a i n s to the state w e r e , in e f f e c t , f o r c e d to t a k e h e a v y losses (Hai Z u o - l i a n g , 1986: 61). L o w prices for agricultural p r o d u c t s h a v e a l s o led to a larger i n c o m e g a p b e t w e e n f u l l - t i m e f a r m e r s and n o n f a r m rural w o r k e r s . T h e i n c o m e per w o r k d a y for the f o r m e r in 1 9 8 5 w a s e s t i m a t e d at 4 . 9 y u a n , but the corres p o n d i n g f i g u r e s for the latter r a n g e d f r o m 8 . 4 yuan ( f o r sideline and c o m mercial u n d e r t a k i n g s ) to 15.0 yuan ( f o r industrial and t r a n s p o r t a t i o n activities) ( R M R B (OE), 1986, M a y 12). E a r n i n g s f r o m n o n f a r m j o b s c o u l d d o u b l e and even triple t h o s e of f u l l - t i m e f a r m i n g p o s i t i o n s . An inevitable r e s u l t is the r e f u s a l of a l m o s t all f a r m e r s to s u b c o n t r a c t m o r e land f r o m their n o n f a r m n e i g h b o r s (Li S h e n g - w e n , 1987: 4 0 ; Li W e i - w u , 1985: 24). For m a n y in the villages, it m a k e s m o r e e c o n o m i c s e n s e to b e c o m e a parttime f a r m e r and also to e n g a g e in s o m e sort of m o r e lucrative n o n f a r m activity. In m a n y areas, n o n f a r m p u r s u i t s have actually b e c o m e the most important e c o n o m i c u n d e r t a k i n g for m a n y p e a s a n t s , w h o look upon f a r m i n g with m u c h less e n t h u s i a s m a n d g i v e it a m u c h l o w e r p r i o r i t y ( C h i n e s e A c a d e m y of A g r i c u l t u r e , 1986: 3 0 - 3 3 ) . T h e s e c o n d m a j o r c o m p o n e n t of the financial b u r d e n is the rising level of local taxes. In m a n y localities, t y p e s and r a t e s of t a x e s h a v e increased

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repeatedly since the early 1980s, sometimes well beyond the limits set by the central and provincial authorities. A study in Gucheng County of Hubei Province revealed that in 1985, there were nineteen different kinds of local taxes imposed upon the peasants, up from only five types of taxes in 1982 (Pan Wen-hui, 1986: 20-21). Moreover, peasants are often forced to finance local highway construction, small-town infrastructure development, and educational and recreational facilities, all of which are supposedly the responsibilities of various local government offices (Pan Wen-hui, 1986: 21, Zhan Qing-lan and Fu Quan-de, 1986). Such demands are particularly serious in areas where collective enterprises are underdeveloped and local officials see peasants as their only major source of revenues. In a nutshell, because local taxes are determined by the size of a farmer's landholdings and because these taxes have rapidly risen in the last several years, many farmers have lost interest in subcontracting more land from those who want to give up their land (Yu Shi-zhen and Chen Qiao-nan, 1985: 59). It is apparent that one major way to convince the peasants to undertake large-scale cultivation is to reduce their economic burden. A logical solution would be to mitigate the two major components of the burden by increasing the procurement prices for grains and reducing local taxes (Zhu Ji-yu, 1986: 18). In reality, however, state prices and local levies prove to be very difficult to modify. Instead, the most commonly adopted strategy is to use the profits from rural nonfarm enterprises to augment the farmers' income. These profits are also used to finance some of the local expenditures, thus relieving part of the farmers' tax obligations (Cheng Chun-dao, 1986: 43; Ye Yen-yu, 1984: 15). For instance, in 1985 in the township of Luyang, Kunshan County, Jiangsu Province, full-time farming households were given a subsidy of 20 yuan per mu for the extra land that they leased. In addition, they were exempted from paying the labor expenses for using collectively owned agricultural machinery and were promised favorable terms in the provision of agricultural inputs and related services (Chen Gen-xiang and Xu Ruenquan, 1986: 43). To be sure, such a practice is only feasible and has only been reported in areas with well-developed rural nonfarm enterprises that can provide the necessary financial sponsorship ( R M R B , 1987, May 23). Although this subsidy has lured some peasants into farming larger tracts of land, such a practice is not without shortcomings. It is true that this arrangement has facilitated the concentration some farmland, but the long-term productivity of the agricultural sector may, at the same time, have been greatly compromised. The problem here lies with the fact that the subsidy can only lure the peasants to accept more farmland; it cannot induce them to sustain, much less improve, the productivity of the land that they have leased (Yang Yi, 1985a: 40). This is because most subcontracting

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a g r e e m e n t s run on a short-term basis (one to t w o years). C o n s e q u e n t l y , the l e s s e e s d o n o t h a v e a n y c o m p e l l i n g r e a s o n t o e n h a n c e t h e f e r t i l i t y of t h e l a n d b e y o n d t h e d u r a t i o n of t h e a g r e e m e n t s . T h e r e s u l t s a r e a r e d u c e d a p p l i c a t i o n of f e r t i l i z e r a n d o t h e r i n p u t s , m i n i m a l a t t e n t i o n to t h e c o n d i t i o n of t h e leased land, and a rapid d e t e r i o r a t i o n of the f a r m l a n d ' s l o n g - t e r m productive capacity (Zhao Jun-xiang, 1985: 44). A n e x a m i n a t i o n of t h e p r o b l e m of f a r m l a n d s u b l e a s i n g r e v e a l s a m a j o r o b s t a c l e s t a n d i n g in t h e w a y o f a g r i c u l t u r a l d e v e l o p m e n t . E v e n w h e n t h e m i g r a n t s a r e w i l l i n g to g i v e u p t h e i r l a n d , t h e r i s i n g l e v e l of t h e l a n d t a x b u r d e n h a s e f f e c t i v e l y d i s c o u r a g e d t h e m o r e e f f i c i e n t f a r m e r s to s u b l e a s e m o r e l a n d a n d e n g a g e in l a r g e - s c a l e p r o d u c t i o n . T h e c u r r e n t p r a c t i c e of u s i n g p r o f i t s f r o m rural n o n f a r m e n t e r p r i s e s to a u g m e n t the f u l l - t i m e f a r m e r ' s i n c o m e c a n o n l y l u r e t h e p e a s a n t s to i n c r e a s e t h e i r l a n d h o l d i n g s n o m i n a l l y . H o w e v e r , w i t h o u t r a i s i n g t h e p r i c e l e v e l s of a g r i c u l t u r a l p r o d ucts a n d r e v i s i n g the land tax s y s t e m , i n c o m e s u b s i d y a l o n e will

not

p r o m p t t h e f a r m e r s to i n c r e a s e y i e l d s o r to i n v e s t in m a k i n g t h e l a n d m o r e productive.

Conclusion T h e m a j o r l e s s o n of t h i s c h a p t e r is t h a t t h e d e v e l o p m e n t of t h e r u r a l n o n f a r m s e c t o r a n d e v e n t h e o u t - m i g r a t i o n of r u r a l w o r k e r s to t h e s m a l l t o w n s d o n o t n e c e s s a r i l y a n d a u t o m a t i c a l l y l e a d to a r u r a l d i v i s i o n of l a b o r that p e r m i t s a h i g h e r c o n c e n t r a t i o n of f a r m l a n d in t h e h a n d s of t h e m o r e e f f i cient producers. Higher prices for farm products and lower agricultural t a x e s m a y b e m o r e e f f e c t i v e in s t i m u l a t i n g t h e f a r m e r s to i n c r e a s e t h e i r p r o d u c t i v i t y . H o w e v e r , both of these o p t i o n s require s o m e b a s i c r e s t r u c t u r i n g of t h e n a t i o n a l p r i c i n g a n d t a x a t i o n s y s t e m s , w h i c h a r e n o t p r o n e to quick adjustments. T o b r e a k t h e link b e t w e e n t h e p e a s a n t m i g r a n t s a n d t h e i r l a n d is an e v e n m o r e d e l i c a t e a n d d i f f i c u l t t a s k . O n e p o s s i b l e s o l u t i o n is to g r a n t m i grants nonagricultural h o u s e h o l d status. O n l y after their e c o n o m i c security has been g u a r a n t e e d w o u l d they be willing to g i v e up their land. H o w e v e r , this m e a n s that C h i n e s e p l a n n e r s will have to rethink the overall rural and urban d e v e l o p m e n t strategy and r e v a m p the h o u s e h o l d registration system. A n o t h e r p o s s i b i l i t y , w h i c h r e q u i r e s m u c h l e s s m o n u m e n t a l w o r k , is to d e s i g n a d i f f e r e n t p o l i c y t h a t w i l l a c t i v e l y e n c o u r a g e t h e g r o u p i n g of s m a l l pieces of f a r m l a n d into larger tracts to permit large-scale production. T h i s policy w o u l d no d o u b t r e q u i r e a r e a f f i r m a t i o n of the c o l l e c t i v e interests a b o v e that of t h e i n d i v i d u a l . B e c a u s e local o f f i c i a l s w o u l d b e a b l e to d r a w o n t h e e x p e r i e n c e of the f o r m e r c o l l e c t i v e s y s t e m , t h e y m i g h t b e m o r e r e c e p t i v e to t h i s s o l u t i o n to t h e f a r m l a n d s u b l e a s i n g p r o b l e m s . 3 A third s t r a t e g y is t o introduce a land market m e c h a n i s m . H o w e v e r , b e c a u s e this entails the f r e e

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s a l e o f f a r m l a n d a m o n g t h e p e a s a n t s , it w o u l d b e l o o k e d u p o n w i t h s k e p ticism by hard-line politicians. T h e s e c o n d m a j o r c o n c l u s i o n o f t h i s c h a p t e r is t h a t t h e r e l a t i o n s h i p s b e t w e e n p r o d u c t i v e u t i l i z a t i o n of a g r i c u l t u r a l l a n d a n d t h e t r a n s f o r m a t i o n of r u r a l l a b o r r e l a t i o n s a r e s u b j e c t t o a v a r i e t y of m a c r o a n d m i c r o f o r c e s t h a t c a n s i g n i f i c a n t l y i n f l u e n c e t h e c h a r a c t e r i s t i c s a n d o u t c o m e s of t h e s e relationships. A m o n g the most important m a c r o forces i n f l u e n c i n g relat i o n s h i p s b e t w e e n c h a n g i n g p a t t e r n s of l a n d u t i l i z a t i o n a n d p a t t e r n s o f d i f f e r e n t i a t i o n in t h e r u r a l l a b o r f o r c e a r e p o l i c i e s a f f e c t i n g l a n d u s e , t a x e s , p u b l i c i n v e s t m e n t , a n d s m a l l - t o w n d e v e l o p m e n t , as w e l l a s t h e s t a t e ' s c o n t i n u i n g n e e d to m a n a g e r e l a t i o n s h i p s b e t w e e n l a n d u s e a n d n o n f a r m w o r k . A m o n g t h e m i c r o f o r c e s of s p e c i a l i m p o r t a n c e a r e a v a r i e t y o f

local

processes and opportunities for generating nonfarm work, for maintaining c o n n e c t i o n s to t h e l a n d t h r o u g h d i f f e r e n t f o r m s of i n t r a h o u s e h o l d d i v i s i o n of l a b o r , a n d f o r m o d i f y i n g t h e i m p a c t s of s t a t e p o l i c i e s a n d d i r e c t i v e s by i n f l u e n c i n g local a d m i n i s t r a t i v e a r r a n g e m e n t s . T h e q u e s t i o n t h a t r e m a i n s is h o w a n d at w h a t c o s t s p r o d u c t i v e n o n f a r m e m p l o y m e n t g r o w t h in r u r a l a r e a s c a n b e s u s t a i n e d in t h e c o n t e x t of a s t a g n a n t a g r i c u l t u r e . S t a t e d d i f f e r e n t l y , t h e q u e s t i o n is: W h a t a r e t h e p r o b a b l e s o c i a l c h a r a c t e r i s t i c s o f t h e g r o w t h of n o n f a r m w o r k in a c o n t e x t of p a r t - t i m e a n d l o w - p r o d u c t i v i t y a g r i c u l t u r e ? It is t o o s o o n , f o r e x a m p l e , t o s e e d e f i n i t i v e l y w h i c h f o r m s of s t r a t i f i c a t i o n in r u r a l l a b o r r e l a t i o n s a r e l i k e l y to last a n d w h i c h t y p e s of h o u s e h o l d s a r e m o s t l i k e l y to b e n e f i t . Ind e e d , t h e s e q u e s t i o n s s u g g e s t t h a t t h e f u t u r e of C h i n a ' s r u r a l t r a n s f o r m a tion has hardly b e e n d e t e r m i n e d .

Notes I have received useful comments from Bruce Koppel, John Hawkins, and William James in revising this chapter. Valuable suggestions on an earlier draft of this paper were given to me by Karen Polenske, Tunney Lee, Shwu Chen, and Casey Hammod. Angelina Lau helped prepare and revise the manuscript in an efficient and pleasant manner. 1. Township Enterprises are mainly rural industries, but they include construction, commercial, transport, and other nonfarm enterprises run by local authorities at the township, town, and village levels, as well as by the peasants themselves. 2. In this respect, provincial officials in Jiangsu Province are the most vocal (Sun Han, 1986; Chen Sheng, 1986; Wu Rong and Li Peng, 1986: 15; Shi Fu-yuen, 1986: 21). Central authorities have also pleaded with local officials to reduce the burden placed on township and village enterprises in financing small-town construction for the same reason—to make sure there is adequate investment in agricultural infrastructure (RMRB, 1985, July 22 and July 29). 3. In August 1987, People's Daily reported on a successful program of consolidating farmland initiated by local officials in Beijing Suenyi County (RMRB, 1987, August 12A). Only one month later, however, People's Daily printed a com-

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mentary that criticized the consolidation of farmland through administrative coercion ( R M R B , 1987, September 14).

References Periodical

and Serial Publications

GWYGB RMRB RMRB (OE) ZGJJNJ

1990

ZGNCTJNJ

1985

ZGNCTJNJ

1990

ZGNYNJ

1980

ZGNYNJ

1983

ZGNYNJ

1984

ZGNYNJ

1985

ZGNYNJ

1986

ZGNYNJ

1987

ZGNYNJ

1988

ZGTJNJ

1987

ZGTJNJ

1989

Other

in Chinese

Language

Guowuyuan Gongbao (State Council Circular) Renmin Ribao (People's Daily) Renmin Ribao (People's Daily, Overseas Edition) Zhongguo Jingji Nianjian 1990 (China's Economics Yearbook 1990) Zhongguo Nongcun Tongji Nianjian 1985 (Statistical Yearbook of China's Rural Sector Zhongguo Nongcun Tongji Nianjian 1990 (Statistical Yearbook of China's Rural Sector Zhongguo Nongye Nianjian 1980 (Statistical Yearbook of China's Agriculture Zhongguo Nongye Nianjian 1983 (Statistical Yearbook of China's Agriculture Zhongguo Nongye Nianjian 1984 (Statistical Yearbook of China's Agriculture Zhongguo Nongye Nianjian 1985 (Statistical Yearbook of China's Agriculture Zhongguo Nongye Nianjian 1986 (Statistical Yearbook of China's Agriculture Zhongguo Nongye Nianjian 1987 (Statistical Yearbook of China's Agriculture Zhongguo Nongye Nianjian 1988 (Statistical Yearbook of China's Agriculture Zhongguo Tongji Nianjian 1987 (China's Statistical Yearbook 1987) Zhongguo Tongji Nianjian 1989 (China's Statistical Yearbook 1989)

1985) 1990) 1980) 1983) 1984) 1985) 1986) 1987) 1988)

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C h e n F e n g . 1985. " X i a o c h e n g z h e n d e j i a n z h i w e n t i " ( " O n the q u e s t i o n of d e s i g nation of small t o w n s " ) , Chengshi guihua (City planning review), V o l . 2, p. 6 3 . C h e n G e n - x i n g a n d Xu R u e n - q u a n . 1 9 8 6 . " K u n s h a n x i a n l u y a n g x i a n g j i a t i n g n o n g c h a n g d e d i a o c h a " ( " A n i n v e s t i g a t i o n of f a m i l y f a r m s in L u y a n g t o w n s h i p , K u n s h a n C o u n t y " ) , Jingji wenti tansuo (Inquiry into economic problems), V o l . 8, pp. 4 1 - 4 3 . C h e n S h e n g . 1986. 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H o , S a m u e l P . S . 1 9 8 6 . The Asian Experience in Rural Nonagricultural Development and Its Relevance for China ( W a s h i n g t o n , D . C . : W o r l d B a n k ) . H u a n g H u a n - z h o n g and S u n X i n - y a . 1 9 8 6 . " T i a o z h e n g n o n g c u n c h a n y e j i e g o u yu hongguan z h i d a o " ( " T o reform the rural occupational structure and a macrolevel policy d i r e c t i o n " ) , Jingji yanjiu (Economic research), V o l . 2, p p . 4 3 - 4 6 . Li J i a n - d e . 1 9 8 6 . " N o n g y e tudi j i n g y i n g d e j i z h o n g yu d u i c e " ( " T h e c o n s o l i d a t i o n of a g r i c u l t u r a l land and its s t r a t e g y " ) , Jingji yanjiu (Economic research). Vol. 4, pp. 3 3 - 3 5 . Li S h e n g - w e n . 1 9 8 7 . " Q i a n x i n o n g c u n tudi z h u a n b a o " ( " A n a n a l y s i s of the s u b l e a s i n g of f a r m l a n d " ) , Caijing kexue (Science of finance and economics), Vol. 2, pp. 3 9 - 4 1 . Li W e i - w u . 1 9 8 5 . " H u b e i n o n g c u n c h a n y e j i e g o u g a i g e d e c h u b u s h e x i a n g " ( " A p r e l i m i n a r y t h o u g h t o n H u b e i ' s rural o c c u p a t i o n a l t r a n s i t i o n " ) , Jianghan luntan (Jianghan forum), V o l . 7, p p . 2 3 - 2 7 . Li Z h o n g . 1 9 8 7 . " Z h u j i a n g s a n j i a o z h o u n o n g y e j i n g y i n g x i n g s h i d e x i a n z h u a n g he f a z h a n q u s h i " ( " O n the c u r r e n t s t a t e and the t r e n d of d e v e l o p m e n t of a g r i c u l t u r e in the Pearl R i v e r d e l t a " ) , Guangdong shehui kexue (Guangdong social sciences), V o l . 1, pp. 4 5 - 5 4 . Li Z h o n g - x i a n . 1985. " T u d i y o u c h a n g z h u a n b a o w e n t i c h u t a n " ( " A s t u d y of t h e p r o b l e m of f a r m l a n d s u b c o n t r a c t i n g w i t h c o m p e n s a t i o n " ) , Nongye jingji wenti (Problems of agricultural economics), V o l . 9, p p . 3 7 - 3 9 . Liu F u - c h e n a n d G u o W e i - g u o . 1 9 8 5 . " J i a n g z h e d i q u n o n g c u n l a o d o n g l i z h u a n y i t a n x i " ( " A n a n a l y s i s on t h e t r a n s f o r m a t i o n of rural l a b o r e r s in the J i a n g s u Z h e j i a n g r e g i o n " ) , Renkou yanjiu (Population research), V o l . 6, pp. 1 7 - 1 9 . Liu G a n g . 1 9 8 6 . " Q i w u s h i q i n o n g y e j i j i e h u a f a z h a n c h u x i " ( " A n a n a l y s i s of a g r i c u l t u r a l m e c h a n i z a t i o n d u r i n g the S e v e n t h F i v e - Y e a r plan p e r i o d " ) , Zhongguo nongcun jingji (China's rural economy). V o l . 7, pp. 5—8. Liu R o n g - q i n . 1987. " N o n g c u n g o n g y e f a z h a n le y i n g g a i z e n y a n g d u i d a i n o n g y e ? " ( " H o w to treat a g r i c u l t u r e w h e n rural i n d u s t r i e s h a v e d e v e l o p e d ? " ) , Zhongguo nongcun jingji (China's rural economy), V o l . 4, pp. 4 5 - 4 9 . Lu H o u - d a a n d C h e n H o n g - e r . 1 9 8 4 . " Y e t a n c h e n g b a o tudi de z h u a n r a n g " ( " A disc u s s i o n o n the t r a n s f e r of leased f a r m l a n d " ) , Zhejiang Xuekan (Zhejiang academic journal), V o l . 2, pp. 7 - 1 2 . Mei T a i - h e a n d D i n g Z h a o - x i a n g . 1984. " Y i n g d a n g guli n o n g m i n 'litu bu l i x i a n g ' " ( " S h o u l d e n c o u r a g e the p e a s a n t s ' t o l e a v e the land, b u t not the rural a r e a s ' " ) , economics), Vol. 11, pp. 2 7 - 2 9 . Nongye jingji wenti (Problems of agricultural M u H o n g - t a o . 1985. " N o n g c u n j i n y i b u g a i g e s u o m i a n l i n d e tudi w e n t i " ( " T o f u r t h e r r e f o r m the land p r o b l e m in t h e c o u n t r y s i d e " ) , Zhongguo nongcun jingji (China's rural economy), V o l . 11, p p . 7 - 1 0 . Pan Q i o n g l i n . 1985. " Z a i l u n n o n g c u n s h a n g p i n g j i n g j i de f a z h a n " ( " T o f u r t h e r disc u s s t h e d e v e l o p m e n t of r u r a l c o m m e r c i a l e c o n o m y " ) , Hunan shida xuebao (Journal of Hunan Normal University), V o l . 2, pp. 3 9 - 4 1 . Pan W e n - h u i . 1986. " J i a n q i n g n o n g m i n f u d a n " ( " R e d u c e p e a s a n t s ' b u r d e n s " ) , Zhongguo nongcun jingji (China's rural economy), V o l . 3, pp. 2 0 - 2 2 . Riskin, Carl. 1987. China's Political Economy ( N e w Y o r k : O x f o r d University Press). S h a n Y o n g - t a n g et al. 1984. " S h i l u n w o g u o n o n g y e l a o d o n g l i youli de j i b e n q u x i a n g j i q i y i y i " ( " A d i s c u s s i o n o n the t r e n d s and m e a n i n g s of the t r a n s f o r m a t i o n of o u r c o u n t r y ' s rural l a b o r e r s " ) , Jingji wenti (Problems in economics), Vol. 12, p p . 3 5 - 3 7 . Shi F u - y u e n . 1986. " J i n g j i f a d a diqu s h i f o u c u n z a i n o n g y e w e i s u o x i a n x i a n g " ( " I s a g r i c u l t u r e d e t e r i o r a t i n g in t h e m o r e d e v e l o p e d a r e a s ? " ) , Zhongguo nongcun jingji (China's rural economy), V o l . 5, p p . 1 6 - 2 1 .

272

Yok-shiu F. Lee

S h u e , V i v i e n n e . 1 9 8 4 . " T h e n e w c o u r s e in C h i n e s e a g r i c u l t u r e , " The annuals of the american academy of political and social science, V o l . 4 7 6 , p p . 7 4 - 8 9 . S u n H a n . 1986. " N o n g y e s h i d u g u i m o j i n g y i n g he s h i x i n g ' y i g o n g b u n o n g ' d e tan s u o " ( " S c a l e e c o n o m i c s of a g r i c u l t u r a l p r o d u c t i o n and a d i s c u s s i o n on i m p l e m e n t i n g the p o l i c y of ' u s i n g i n d u s t r y to a s s i s t a g r i c u l t u r e ' " ) , Nongye jingji wenti (Problems of agricultural economics), V o l . 2, pp. 9 - 1 3 . W a n g D a i and Z h u G a n g . 1986. " N o n g c u n j i n g j i f a z h a n yu tudi j i z h o n g j i n g y i n g " ( " R u r a l e c o n o m i c d e v e l o p m e n t and the c o n s o l i d a t i o n of f a r m l a n d " ) , Zhongrural economy), V o l . 3, p p . 2 3 - 2 5 . guo nongcun jingji (China's W a n g G u o - x i a n g . 1 9 8 6 . " ' J u n t i a n h u a ' shi f a z h a n n o n g c u n s h a n g p i n j i n g j i d e y i d a z h a n g ' a i " ( " A n e q u a l d i s t r i b u t i o n of f a r m l a n d is an o b s t a c l e in d e v e l o p i n g a g r a r i a n c o m m e r c i a l i z a t i o n " ) , Zhongguo nongcun jingji (China's rural economy), V o l . 5, p p . 2 1 - 2 4 . W a n g X i n g - l o n g . 1 9 8 4 . " X i a n j i e d u a n n o n g c u n tudi z h u a n b a o w e n t i q i a n y i " ( " A d i s c u s s i o n of t h e p r o b l e m of f a r m l a n d s u b c o n t r a c t i n g " ) , Hongqi (Red flag), V o l . 8, pp. 2 4 - 2 8 . W u Da-qian and W u D e - f u . 1984. " S u z h o u s h i xiao c h e n g z h e n j i a n s h e c h u t a n " ( " A n inquiry of s m a l l t o w n d e v e l o p m e n t in S u z h o u " ) , Shehuixue tongxun (Sociology bulletin), V o l . 3, pp. 2 7 - 3 4 . W u R o n g and Li P e n g . 1 9 8 6 . " Y i g o n g j i a n n o n g shi f a d a d i q u f a z h a n n o n g y e di x i n d u j i a n " ( " T o rely on industry to b u i l d a g r i c u l t u r e is a n e w s t r a t e g y to d e v e l o p a g r i c u l t u r e in m o r e d e v e l o p e d r e g i o n " ) , Zhongguo Nongcun Jingji (China's rural economy), N o . 3, pp. 1 2 - 1 5 . W u X i a n g - y u . 1 9 8 6 . " N o n g m i n f u d a n de j i x i a n z h i " ( " T h e limit of p e a s a n t s ' b u r d e n " ) , Zhongguo nongcun jingji (China's rural economy), V o l . 4, pp. 2 7 - 2 8 . W u Z h i h u a and M e n g Z h i - x i a n . 1985. " N o n g c u n j i n g j i wenti m i n y i d i a o c h a " ( " A n i n v e s t i g a t i o n of t h e p e o p l e ' s o p i n i o n o n the r u r a l e c o n o m y " ) , Nongye jingji wenti (Problems of agricultural economics), V o l . 11, pp. 5 4 - 5 6 . X i o n g C h e n g - j i a . 1986. " L i t u bu l i x i a n g de tifa b u t u o " ( " T h e p r o p o s a l ' t o l e a v e the land, but not the rural a r e a s ' is not a p p r o p r i a t e " ) , Nongye jingji wenti (Problems of agricultural economics), V o l . 1, pp. 5 7 - 5 8 . Xu J i n g - y o n g . 1 9 8 4 . " C u j i n z h u a n y e f e n g o n g f a z h a n s h a n g p i n s h e n g c h a n " ( " P r o m o t e s p e c i a l i z a t i o n and d i v i s i o n of l a b o r , d e v e l o p c o m m e r c i a l i z e d p r o d u c tion"), Zhongguo jingji wenti (China's economic problems), V o l . 4, pp. 5 3 - 5 7 . Xu Y u n - q u a n . 1 9 8 5 . " Y i t u o f a d a x i a n g z h e n g o n g y e tuijin x i a n d a i n o n g y e f a z h a n " ( " T o rely on t o w n s h i p i n d u s t r i e s to p u s h f o r w a r d a g r i c u l t u r a l m o d e r n i z a t i o n " ) , Nongye xiandaihua yanjiu (Research of agricultural modernization), V o l . 6, pp. 9 - 1 2 . Y a n g Y i . 1 9 8 5 a . ' " S h i g u o d u m o s h i h a i s h i m u b i a o m o s h i ? ' — X i ' l i t u bu l i x i a n g ' [ X i a ] " ( " A n a n a l y s i s of ' t o l e a v e t h e l a n d , b u t n o t the rural a r e a s ' — I s it a t r a n s i t i o n a l m o d e l or an u l t i m a t e a i m ? [ P a r t I I ] " ) , Zhongguo nongcun jingji (China's rural economy), V o l . 11, pp. 3 7 - 4 2 . . 1 9 8 5 b . ' " S h i g u o d u m o s h i h a i s h i m u b i a o m o s h i ? ' — x i ' l i t u bu l i x i a n g ' [ S h a n g ] " ( " A n a n a l y s i s of ' t o l e a v e the land, but not the rural a r e a s ' — I s it a t r a n s i t i o n a l m o d e l or an u l t i m a t e a i m ? [ P a r t I ] " ) , Zhongguo nongcun jingji (China's rural economy), V o l . 10, pp. 1 - 3 . Ye Y e n - y u . 1984. " X i a n g z h e n q i y e yu n o n g y e f a n f a n " ( " T o w n s h i p e n t e r p r i s e s and a g r i c u l t u r a l d e v e l o p m e n t " ) , Jianghan luntan (Jianghan forum), V o l . 11, pp. 12-16. Y u S h i - z h e n a n d C h e n Q i a o - n a n . 1 9 8 5 . " Y a o y u n x u tudi z h u a n x i a n g s h i y o n g " ( " S h o u l d a l l o w l a n d - u s e c o n v e r s i o n " ) , Nongye jingji wenti (Problems of agricultural economics), V o l . 4, p. 5 9 .

Rural Nonagricultural Activities in China

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Z h a n Q i n g - l a n and Fu Q u a n - d e . 1 9 8 6 . " Q i a n t a n j i a n q i n g n o n g m i n f u d a n d e t u j i n g " Zhongguo ( " A d i s c u s s i o n o n h o w to r e d u c e t h e p e a s a n t s ' f i n a n c i a l b u r d e n " ) , nongcun jingji (China's rural economy). V o l . 10, p p . 24—26. Z h a n g W e n - h u i . 1986. " G u a n y u d i n g g o u l i a n g j i a w e n t i d e j i a n y i " ( " A p r o p o s a l o n h o w to s o l v e the p r o b l e m of g r a i n p r i c e s " ) , Jingji wenti tansuo (Inquiry into economic problems). V o l . 5, p p . 5 8 . Z h a n g Y u - l i n . 1986. " T h e s h i f t of s u r p l u s a g r i c u l t u r a l l a b o u r f o r c e at d i f f e r e n t leve l s , " in Small Towns in China ( B e i j i n g : N e w W o r l d P r e s s ) , pp. 1 7 1 - 1 9 5 . Zhang Zhuo-yuan. 1985. "Fazhan xiangzhen jingji, jiasu shehuizhuyi xiandaihua j i a n s h e " ( " T o d e v e l o p the t o w n s h i p e c o n o m y , to a c c e l e r a t e S o c i a l i s t m o d e r n i z a t i o n " ) , Study materials for economists, V o l . 2, p p . 6 3 - 6 8 . Z h a o J u n - x i a n g . 1 9 8 5 . " Y e t a n tudi y o u c h a n g z h u a n b a o " ( " A d i s c u s s i o n on f a r m land s u b c o n t r a c t i n g w i t h c o m p e n s a t i o n " ) , Nongye jingji wenti (Problems of agricultural economics), V o l . 9, p p . 4 0 - 4 4 . Zhao Hing-han. 1986. "Jiage gaige z h o n g yao fangzhi g o n g n o n y chanpin d a f u d u l u n f a n z h a n g j i a " ( " G u a r d a g a i n s t spiral i n f l a t i o n of i n d u s t r i a l and a g r i c u l t u r a l g o o d s d u r i n g price r e f o r m s " ) , Tianjin shehui kexue (Tianjin social sciences), V o l . 2, p p . 2 5 - 2 7 . Z h a o Z h i - y u a n et al. 1 9 8 5 . " D u i s h a h e x i a n zai c h a n y e j i e g o u t i a o z h e n g z h o n g j i e j u e tudi z h u a n b a o w e n t i d e d i a o c h a " ( " A s t u d y of the p r o b l e m of f a r m l a n d s u b c o n t r a c t i n g in S h a h e C o u n t y u n d e r g o i n g o c c u p a t i o n a l t r a n s i t i o n " ) , Nongye jingji wenti (Problems of agricultural economics), V o l . 9, pp. 4 5 - 4 7 . Zhou D e - z h e n g . 1984. " G u a n y u w o s h e n g z h u a n y e c u n q i n g k u a n g de c h u b u d i a o c h a " ( " A p r e l i m i n a r y s t u d y of s p e c i a l i z e d v i l l a g e s in o u r p r o v i n c e " ) , Zhongzhou xuekan ( Z h o n g z h o u a c a d e m i c j o u r n a l ) , V o l . 1, pp. 1 4 - 1 9 . Z h o u Q i - r e n et al. 1 9 8 5 . " T u d i z h u a n b a o d e d i a o c h a , he c h u b u f e n x i " ( " A s t u d y and a n a l y s i s of f a r m l a n d s u b c o n t r a c t i n g , " Village, economy, society, V o l . 3, pp. 1 0 - 1 6 . Z h u J i - y u . 1 9 8 6 . " D a n g q i a n w o g u o tudi w e n t i j i q i d u i c e " ( " T h e land p r o b l e m in o u r c o u n t r y and its s o l u t i o n " ) Zhongguo nongcun jingji (China's rural economy), V o l . 3, pp. 1 6 - 1 9 .

9 Development or Deterioration? Understanding Employment Diversification in Rural Asia Bruce Koppel and William James A key step in interpreting the significance of nonfarm employment in rural Asia is to assess when and whether the appearance and growth of this form of employment differentiation is an indicator of economic and social development—associated with diversified and increased sources of income for rural households and with the relative liberation of these households from dependence on agrarian social and political relations. Conversely, it is vital to determine if this differentiation is symptomatic of processes of deterioration—in economic welfare, in social mobility, and in the distribution of political power. In the first chapter, we identified two fundamental conceptual problems that must be addressed in order to evaluate the causes and consequences of employment differentiation in rural Asia, specifically the evolution of differentiation along lines away from agrarian modes of production. 1.

2.

First, it is essential to improve our understanding of relationships between diverse local processes of s o c i o e c o n o m i c and political change in rural Asia and the growth and exercise of state power and its influence on rural Asia. How are these micro and macro processes interrelated and with what consequences for employment diversification and class differentiation in rural areas? Second, it is especially essential to improve our understanding of the theoretical significance of nonfarm employment in rural areas. Should such employment be understood primarily in relation to processes of agrarian differentiation (which has been the predominant perspective) or in relation to processes of urbanization (which is really another way of reaffirming the agrarian metaphor as the paramount perspective on rural socioeconomic processes)? Or are distinctive theoretical connections needed, connections, for example, that would not limit nonfarm employment in rural areas to a residual outcome of agrarian (implicit in the term nonfarm) processes?

275

276

Bruce Koppel and William James

In this c h a p t e r , w e w i l l r e v i e w w h a t w e s e e as t h e p r i n c i p a l c o n c l u s i o n s that can be d r a w n f r o m the c o u n t r y s t u d i e s w i t h r e g a r d to t h e s e t w o i s s u e s . For t h e s e p u r p o s e s , o u r d i s c u s s i o n will be o r g a n i z e d a r o u n d t h r e e t h e m e s : ( 1 ) m a c r o - m i c r o r e l a t i o n s h i p s , ( 2 ) t h e e m e r g e n c e of " n e w " e c o n o m i e s , a n d ( 3 ) a r e a s s e s s m e n t of t h e E a s t A s i a n m o d e l .

Macro-Micro Relationships T h e s t u d i e s c o n f i r m b o t h t h e r e a l i t y a n d d i v e r s i t y of m a c r o - m i c r o r e l a t i o n s h i p s as a c o n t e x t f o r u n d e r s t a n d i n g e m p l o y m e n t d i f f e r e n t i a t i o n . T h e d i v e r s i t y , l o n g a p p a r e n t to A s i a n s p e c i a l i s t s , is i m p o r t a n t to a c k n o w l e d g e , e s p e c i a l l y g i v e n t h e r e s i d u a l a l l e g i a n c e s to o r i e n t a l i s m a n d r e l a t e d f o r m s of e s s e n t i a l i s m that c a n still be f o u n d in A s i a n s t u d i e s a n d the d e d i c a t i o n to u n i v e r s a l i t y f o u n d in s e v e r a l d i s c i p l i n e s . T h e c h a l l e n g e of e x p l a i n i n g t h e d i v e r s i t y d r a w s a t t e n t i o n to t h e l i m i t s of e x i s t i n g c o n c e p t u a l f r a m e w o r k s f o r u n d e r s t a n d i n g a g r a r i a n c h a n g e a n d rural t r a n s f o r m a t i o n , a p o i n t d e v e l o p e d in C h a p t e r 1. H o w e v e r , this d o e s not i m p l y that any b r o a d e r exp l a n a t i o n s are i n f e a s i b l e . A c r o s s t h e d i v e r s i t y d i s c u s s e d in t h i s v o l u m e , s e v e r a l i n t e r e s t i n g a n d i m p o r t a n t t h e m e s d o a p p e a r . T h e s e t h e m e s will all r e q u i r e f u r t h e r r e s e a r c h , b u t the s t u d i e s d o s u g g e s t s o m e i m p o r t a n t p o s s i b i l i t i e s a b o u t their s i g n i f i c a n c e . First, it is i m p o r t a n t to n o t e that m a c r o f o r c e s that t r a d i t i o n a l l y h a v e a t t r a c t e d the m o s t a n a l y t i c a l a t t e n t i o n — t h e r o l e s of the s t a t e ; m a c r o e c o n o m i c d e v e l o p m e n t s t r a t e g i e s ; the i m p a c t s of f o r e i g n i n v e s t m e n t , e x t e r n a l d e b t , and o t h e r i n d i c a t o r s of i n c o r p o r a t i o n into the w o r l d c a p i t a l i s t s y s t e m ; a n d p a t t e r n s of u r b a n i z a t i o n and r e g i o n a l i z a t i o n — a l l a p p e a r in t h e s t u d i e s , a n d c l e a r l y , all are r e l e v a n t . S i m i l a r l y , at t h e m i c r o l e v e l , the s t u d i e s lay o u t e v i d e n c e of a r a n g e o f f a m i l i a r c o n d i t i o n s a n d p r o c e s s e s — i n c l u d i n g the e f f e c t s of p o p u l a t i o n p r e s s u r e a n d r e s t r i c t e d a c c e s s to land o n the p o litical e c o n o m y of a g r a r i a n labor r e l a t i o n s , b o t h i n c r e a s i n g a n d d e c l i n i n g agricultural productivity and their e f f e c t s on rural h o u s e h o l d survival strategies and polarization processes within rural c o m m u n i t i e s , and the s o u r c e s a n d c o n s e q u e n c e s of c o m m u n i t y p o l i t i c s a n d f a c t i o n a l i s m . S e c o n d , a t t e n t i o n is g i v e n to t h e r e l a t i o n s h i p s b e t w e e n m a c r o a n d m i c r o p r o c e s s e s , m o s t n o t a b l y b e t w e e n t h e n a t u r e of u r b a n i z a t i o n and ind u s t r i a l i z a t i o n p r o c e s s e s a n d the p o l i t i c a l e c o n o m y of a g r a r i a n r e l a t i o n s ; b e t w e e n the r o l e s of f o r e i g n capital a n d m a r k e t s a n d c o m m u n i t y labor all o c a t i o n ; a n d b e t w e e n p r o c e s s e s of s t a t e d e v e l o p m e n t a n d l o c a l - l e v e l p r o c e s s e s of c l a s s f o r m a t i o n . A s s e e n , f o r e x a m p l e , in t h e c h a p t e r s on B a n g l a d e s h , I n d i a , M a l a y s i a , the P h i l i p p i n e s , a n d T h a i l a n d , t h e s e p a t t e r n s a n d r e l a t i o n s h i p s h a v e a f u n d a m e n t a l b e a r i n g on the p r o s p e c t s f o r p r o d u c tive e m p l o y m e n t g e n e r a t i o n in b o t h the r u r a l a n d u r b a n s e c t o r s , as well as o n t h e c a u s e s a n d c o n s e q u e n c e s of e m p l o y m e n t d i f f e r e n t i a t i o n in rural areas specifically.

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H o w e v e r , t h e s t u d i e s a l s o i l l u s t r a t e that c o n v e n t i o n a l u n i l i n e a r a n d t o p - d o w n u n d e r s t a n d i n g s of m a c r o - m i c r o r e l a t i o n s h i p s in r u r a l e m p l o y m e n t d i f f e r e n t i a t i o n a r e n o t o n l y t o o s i m p l i s t i c , they m a y a l s o b e f u n d a m e n t a l l y m i s l e a d i n g . In s e v e r a l c a s e s , w e s e e m u c h m o r e i n t e r a c t i v e p r o c e s s e s , in w h i c h the i m p a c t s of m a c r o f o r c e s a r e not s i m p l y m o d i f i e d in s o m e w a y b y m i c r o - l e v e l p r o c e s s e s , r a t h e r , f u n d a m e n t a l c h a r a c t e r i s t i c s of t h e s e m a c r o - f o r c e s a r e a c t u a l l y d e r i v e d f r o m t h e i n t e r p l a y of m i c r o - l e v e l f o r c e s . T h i s i n t e r a c t i v e n e s s a n d , in p a r t i c u l a r , w h a t c a n b e c a l l e d p o l y c e n t r i c initiative w i t h i n m a c r o - m i c r o r e l a t i o n s h i p s is a c o n s e q u e n c e of a v a r i ety of v e r t i c a l l i n k a g e s — s o m e o l d a n d s o m e n e w — t h a t h a v e d e v e l o p e d to o r g a n i z e m a c r o - m i c r o r e l a t i o n s h i p s in rural A s i a . In s o m e c a s e s (e.g., C h i n a , I n d o n e s i a , t h e P h i l i p p i n e s , a n d T h a i l a n d ) , t h e s e vertical l i n k a g e s a r e e m b o d i e d in the e v o l u t i o n or p e r s i s t e n c e of reg i o n a l m a r k e t s y s t e m s a n d p o l i t i c a l e c o n o m i e s that d o not s i m p l y i n t e r m e d i a t e b e t w e e n m a c r o a n d m i c r o f o r c e s b u t that a l s o e s t a b l i s h r e l a t i v e l y i n d e p e n d e n t a r e n a s f o r e c o n o m i c e x c h a n g e a n d p o l i t i c a l d i s c o u r s e . In other cases (e.g., B a n g l a d e s h , India, and Malaysia), the vertical linkages b e t w e e n m a c r o and m i c r o p r o c e s s e s a r e b e i n g i n s t i t u t i o n a l i z e d in the f o r m of e m e r g i n g g e n d e r , c l a s s , a n d t e r r i t o r i a l l y b a s e d a f f i l i a t i o n s . T h e s e linka g e s are still t e n t a t i v e b u t a p p e a r to b e c l o s e l y r e l a t e d to e v o l v i n g c l a i m s of cultural a n d political r e p r e s e n t a t i o n . H o w e v e r , w h a t is e s p e c i a l l y crucial is that t h e s e c l a i m s a r e g e n e r a l l y c o n t e s t e d . In f a c t , d i f f e r e n t l o c a l , r e g i o n a l , a n d n a t i o n a l a c t o r s are c o n t e n d i n g f o r p r e e m i n e n c e a n d l e g i t i m a c y . Both c a s e s — e v o l v i n g and persistent regional systems and new and contending arrangements for organizing macro-micro relationships—draw o u r a t t e n t i o n to p o t e n t i a l l y s i g n i f i c a n t d i s c o n t i n u i t i e s in m a c r o - m i c r o relat i o n s h i p s a f f e c t i n g r u r a l A s i a . T h e s e d i s c o n t i n u i t i e s c o u l d , in t u r n , h a v e very c r u c i a l i m p l i c a t i o n s f o r the s i g n i f i c a n c e of n o n f a r m e m p l o y m e n t d i f f e r e n t i a t i o n in rural a r e a s . F o r e x a m p l e , s e v e r a l of t h e c h a p t e r s r a i s e imp o r t a n t q u e s t i o n s a b o u t o u r u n d e r s t a n d i n g s of rural h o u s e h o l d s a n d c o m m u n i t i e s . In s t u d i e s of r u r a l A s i a , h o w e v e r , it is not u n u s u a l t o hear that, in r e a l i t y , r u r a l c o m m u n i t i e s a r e n o t t h e s o l i d a r y s o c i a l u n i t s s o m e t i m e s p o r t r a y e d . B u t the d r i f t a w a y f r o m unity is not s i m p l y a s t o r y of p o l i t i c a l a n d s o c i a l f a c t i o n a l i s m w i t h i n e s s e n t i a l l y a g r a r i a n r e l a t i o n s , nor e v e n of t h e i n t r u s i o n of c a p i t a l i s t r e l a t i o n s h i p s i n t o a k i n s h i p - b a s e d h i e r a r c h y . R a t h e r , o n o c c a s i o n , the d r i f t a p p e a r s to b e a m o r e f u n d a m e n t a l d i v e r s i f i c a t i o n of t h e p r e m i s e s of l e g i t i m a t e p o w e r w i t h i n the c o m m u n i t y . W h a t is i m p o r t a n t h e r e is that this d i f f e r e n t i a t i o n w i t h i n m a n y rural c o m m u n i t i e s is the i m m e d i a t e p l a y i n g f i e l d f o r e m p l o y m e n t d i f f e r e n t i a t i o n . S i m i l a r l y , the q u e s t i o n of d i s c o n t i n u i t i e s in the c h a n g e s c h a r a c t e r i z i n g t h e rural h o u s e h o l d o p e n s s o m e i m p o r t a n t n e w d o o r s . T h e p i c t u r e of t h e h o u s e h o l d a s a m i n i f i r m , a l l o c a t i n g l a b o r a n d o t h e r r e s o u r c e s in r e s p o n s e to a u n i t a r y c a p i t a l a c c u m u l a t i o n a n d w e l f a r e m a x i m i z a t i o n f u n c t i o n , is c h a l l e n g e d in s e v e r a l c h a p t e r s . T h e c h a l l e n g e is not t o t h e r e a l i t y of t h e residential household but to the virtually exclusive affiliative priority for

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b r o a d e r s o c i o p o l i t i c a l p u r p o s e s o f t e n a s s i g n e d to the residential h o u s e h o l d . W e s e e , i n s t e a d , a v a r i e t y of o l d a n d n e w a f f i l i a t i v e f o c i — k i n s h i p , w o r k group, age group, gender group, ethnicity, class, political party, c o m m u n i t y — a n d i m p o r t a n t l y , e a c h in m a n y w a y s is c o n t e s t i n g f o r p r i o r i t y , not m e r e l y a r o l e . It is this p r o c e s s of c o n t e s t i n g that c r e a t e s a f l u i d s i t u a t i o n in m a n y c a s e s f o r t h e s t a t u s of the h o u s e h o l d as the p r i m e unit of a n a l y s i s in p o l i t i c a l a n d social m o b i l i z a t i o n . H e r e a g a i n , w e n e e d to r e c o g n i z e that e m p l o y m e n t d i f f e r e n t i a t i o n u n f o l d s in t h i s d i s p u t e d c o n t e x t . It is a l s o i m p o r t a n t to r e c o g n i z e , h o w e v e r , that t h e r e a r e i m p o r t a n t c o n t i n u i t i e s o p e r a t i n g as well. A l t h o u g h t h e s e f u n c t i o n p a r t i c u l a r l y at the m i c r o level, they have important implications for the evolution and c o n s e q u e n c e s of m a c r o - m i c r o l i n k a g e s . In t h e c a s e d e s c r i b e d b y M i r i a m S h a r m a , for e x a m p l e , a d e v e l o p m e n t strategy w a s premised on the exist e n c e of c o n t i n u i t i e s in r e l a t i o n s h i p s b e t w e e n h i e r a r c h i e s b a s e d on the org a n i z a t i o n of t h e h o u s e h o l d a n d h i e r a r c h i e s b a s e d o n g e n d e r . In o t h e r c a s e s , the p r e s e n c e of i m p o r t a n t c o n t i n u i t i e s has a s i g n i f i c a n t i m p l i c a t i o n f o r h o w w e i n t e r p r e t the political e c o n o m y of e m p l o y m e n t d i f f e r e n t i a t i o n . T h e rise of n o n f a r m w a g e labor in all t h e c a s e s s t u d i e d h e r e c l e a r l y d o e s not h a v e e q u i v a l e n t p o l i t i c a l s i g n i f i c a n c e . A m a j o r r e a s o n f o r this is that e m p l o y m e n t d i f f e r e n t i a t i o n d o e s not r e p r e s e n t a t o t a l l y c l e a n b r e a k w i t h t h e i d e o l o g y of e x i s t i n g a g r a r i a n social r e l a t i o n s . T h i s is not e q u i v a l e n t to c o n c e d i n g that t h e d i f f e r e n t i a t i o n is a d e r i v a t i v e of a g r a r i a n d i f f e r e n t i a t i o n ; r a t h e r , it s u g g e s t s that w h a t e v e r t h e c a u s e s of n o n f a r m e m p l o y m e n t d i f f e r e n t i a t i o n , this d i f f e r e n t i a t i o n is e m b e d d e d in d i f f e r i n g w a y s in an a g r a r i a n c o n t e x t . T h i s c o n t e x t , in t u r n , t h o u g h e x p e r i e n c i n g s o m e of t h e discontinuities noted earlier, also experiences important continuities—in cultural n o r m s , in f o r m s of political l e g i t i m a c y , a n d in a c c e p t e d p a t t e r n s of c a p i t a l a c c u m u l a t i o n . A n i m p o r t a n t i m p l i c a t i o n h e r e is that, in m a n y ins t a n c e s , t h e d i f f e r e n t i a t i o n r e m a i n s m o r e e m b e d d e d in t h e i d e o l o g i e s of a g r a r i a n r e l a t i o n s — e s p e c i a l l y as t h e y r e l a t e to q u e s t i o n s of p o w e r — t h a n in t h e a c t u a l d y n a m i c s of a g r a r i a n d i f f e r e n t i a t i o n p r o c e s s e s . T h i s p o i n t is w e l l i l l u s t r a t e d by G i l l i a n H a r t ' s M a l a y s i a n a n a l y s i s , w h e r e t h e p o i n t s of c o n t e n t i o n b e t w e e n d i f f e r i n g c l a i m s f o r r e p r e s e n t a t i o n and initiative relate m o r e to a t t e m p t s to c h a l l e n g e i d e o l o g i c a l c o n t i n u i t i e s r a t h e r than political economy discontinuities. W h a t is e s p e c i a l l y i n t e r e s t i n g in this r e g a r d is that w h e n the c o n t i n u ities a n d d i s c o n t i n u i t i e s in the s o c i o p o l i t i c a l s i g n i f i c a n c e of rural c o m m u n i t i e s a n d h o u s e h o l d s a r e c o n s i d e r e d in r e l a t i o n to the c h a n g i n g r o l e s of t h e s t a t e , an i m p o r t a n t a n d f u n d a m e n t a l i s s u e a r i s e s . S t a t e a g g r a n d i z e m e n t h a s b e e n d o c u m e n t e d f o r e a c h of t h e c o u n t r i e s d i s c u s s e d in t h i s b o o k . H o w e v e r , as s e v e r a l of the s t u d i e s s u g g e s t ( e . g . , t h o s e o n M a l a y s i a a n d T h a i l a n d ) , t h e c o m p o s i t i o n a n d o r i e n t a t i o n of t h e s t a t e is c o n s i d e r a b l y m o r e d y n a m i c than the more static and deterministic traditional pictures have s u g g e s t e d . T h e states are c h a r a c t e r i z e d by important c o n c e r n s for

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control, regulation, extraction, and legitimation, but these are unevenly ins t i t u t i o n a l i z e d a n d , in p r a c t i c e , m a y b e m o r e c h a r a c t e r i s t i c of e v o l v i n g p r o c e s s e s of s t a t e - s o c i e t y interaction instead of settled, institutionalized d e s i g n s for that interaction. O f t e n , for e x a m p l e , c l a i m s of legitimation exc e e d i n s t i t u t i o n a l i z e d c a p a c i t i e s f o r i n d e p e n d e n t r e g u l a t i o n — a p o i n t t h a t is e s p e c i a l l y c l e a r in t h e P h i l i p p i n e c a s e . S i m i l a r l y , f o r s t a t e r o l e s in e x t r a c t i o n , it is i n c r e a s i n g l y c l e a r t h a t t h e p o s i t i o n of t h e s t a t e in r e l a t i o n to b o t h d o m e s t i c a n d i n t e r n a t i o n a l n o n s t a t e a c t o r s is m o r e t e n t a t i v e a n d c o n t e s t e d t h a n m i g h t h a v e b e e n p r e v i o u s l y t h o u g h t — a g a i n , a p o i n t t h a t is p a r t i c u larly w e l l i l l u s t r a t e d b y t h e P h i l i p p i n e c a s e . A g a i n s t t h i s b a c k g r o u n d , a f u n d a m e n t a l c r i s i s in w e l f a r e a n d l e g i t i m a t i o n a p p e a r s to be u n f o l d i n g . A s the rural c o m m u n i t y and h o u s e h o l d lose their solidarity and their primary c l a i m s on allegiance, they are also l o s i n g t h e i r a b i l i t i e s t o s e r v e as t h e p r i n c i p a l s o u r c e s of s o c i a l s e c u r i t y a n d normative stabilization. This has c o n s e q u e n c e s both for social welfare and f o r p r o c e s s e s of p o l i t i c a l l e g i t i m a t i o n at t h e m a c r o l e v e l . A t t h e s a m e t i m e b u t in d i f f e r e n t w a y s a c r o s s c o u n t r i e s , t h e s t a t e h a s p r o p o s e d itself as t h e p r o v i d e r o f s o c i a l s e c u r i t y a n d , t h r o u g h its i n c r e a s i n g f o c u s o n l e g i t i m a t i o n ( t h r o u g h a p p e a l s , f o r e x a m p l e , to i d e o l o g i e s of n a t i o n a l i s m a n d s t a tism), as the guidepost for normative stabilization. This point can be seen m o s t c l e a r l y in t h e c h a p t e r s o n C h i n a a n d M a l a y s i a , b u t it is s i g n i f i c a n t in d i f f e r e n t w a y s in o t h e r c h a p t e r s , a s w e l l . H o w e v e r , t h e s t a t e ' s a b i l i t y to a c t u a l l y p r o v i d e t h e s e f u n c t i o n s of s o c i a l s e c u r i t y a n d n o r m a t i v e s t a b i l i z a t i o n is q u e s t i o n a b l e . A s t h e c l o s i n g p a g e s o f M i r i a m S h a r m a ' s c h a p t e r i l l u s t r a t e v i v i d l y , t h e s p l i n t e r i n g of t h e r u r a l h o u s e h o l d a n d c o m m u n i t y a n d t h e l i m i t e d c a p a c i t y of t h e s t a t e t o substitute for certain key f u n c t i o n s that h o u s e h o l d and c o m m u n i t y

have

p l a y e d m e a n s that i m p o r t a n t s p a c e s f o r s o c i o e c o n o m i c a n d p o l i t i c a l i n n o v a t i o n a r e o p e n i n g . B u t w i t h t h e o p e n i n g of t h e s e s p a c e s — t h e p r o d u c t of m a c r o - m i c r o r e l a t i o n s h i p s — c o m e risks. Old local elites may be resanctified. N e w local elites may s u c c e s s f u l l y arise. N o n f a r m e m p l o y m e n t diff e r e n t i a t i o n is u n f o l d i n g p r e c i s e l y in t h i s i n c r e a s i n g l y c o n t e s t e d s p a c e . A t t h e l e a s t , t h i s s t r o n g l y s u g g e s t s t h a t a s s e s s m e n t s of t h e s i g n i f i c a n c e o f n o n f a r m e m p l o y m e n t in r u r a l A s i a m u s t b e set in t h e c o n t e x t of t h e s e c o m p l e x p r o c e s s e s of b o t h c o n s t r u c t i o n a n d d e c o n s t r u c t i o n , o f a r t i c u l a t i o n a n d disarticulation. At a m i n i m u m , this m e a n s that relationships b e t w e e n structure a n d a g e n c y in e x p l a n a t i o n s of e m p l o y m e n t d i f f e r e n t i a t i o n in r u r a l a r e a s m u s t b e h a n d l e d v e r y c a r e f u l l y i n d e e d . M u c h m o r e a t t e n t i o n is n e e d e d o n t h e e x p l i c a t i o n o f p o l y c e n t r i c i n i t i a t i v e in m a c r o - m i c r o r e l a t i o n s a n d in t h e evolution and c o n s e q u e n c e s of different patterns for

institutionalizing

t h e s e r e l a t i o n s h i p s . C o n c l u d i n g h i s s t u d y of p o l i t i c a l c h a n g e in a n o r t h e r n V i e t n a m e s e v i l l a g e , H y V . L u o n g ( 1 9 9 2 : 2 3 2 ) o f f e r s a n e x a m p l e of w h a t this k i n d of s e l f - c o n s c i o u s d e c o n s t r u c t i o n c a n i l l u m i n a t e :

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In the final a n a l y s i s , the V i e t n a m e s e r e v o l u t i o n i n v o l v e d a d y n a m i c interplay b e t w e e n local tradition and capitalist i m p e r i a l i s m in the c o l o n i a l c o n t e x t . In the e n c o u n t e r b e t w e e n the t w o s y s t e m s , the p e r s i s t e n c e of the n o n c a p i t a l i s t labor reserves in north and central V i e t n a m did not merely contribute to capitalist a c c u m u l a t i o n . It a l s o p r o v i d e d i d e o l o g i c a l and org a n i z a t i o n a l support for the a n t i c o l o n i a l r e s i s t a n c e . In the l o n g run, the e n c o u n t e r b e t w e e n the V i e t n a m e s e tradition, on the o n e hand, and w e s t ern c o l o n i a l i s m and capitalist i m p e r i a l i s m , o n the other, both a d v e r s e l y a f f e c t e d capitalist a c c u m u l a t i o n and u s h e r e d in a n e w era in the i n d i g e n o u s s o c i a l formation.

The Emergence of "New" Economies In a s s e s s i n g t h e t h e o r e t i c a l s i g n i f i c a n c e of n o n f a r m w o r k in rural A s i a , it is c l e a r t h a t r e s e a r c h q u e s t i o n s m u s t m o v e b e y o n d s o m e of t h e key a s s u m p t i o n s r o u t i n e l y m a d e in m a j o r c o n c e p t u a l f r a m e w o r k s a b o u t t h e c o m p o s i t i o n a n d d y n a m i c s of a g r a r i a n a n d rural s o c i a l s t r u c t u r e a n d e c o n o m i c a c t i v i t y . For e x a m p l e , a n a l y s t s c a n n o t m e r e l y a s s u m e that c e r t a i n e m p l o y m e n t r e l a t i o n s ( e . g . , w a g e e m p l o y m e n t ) u n i f o r m l y m e a n that a c a p i t a l i s t e c o n o m y is o p e r a t i n g ; they m u s t s t r i v e f o r a m o r e c o n t e x t u a l u n d e r s t a n d ing of w h a t k i n d s of e c o n o m i c s t r u c t u r e s a n d r e l a t i o n s a r e a c t u a l l y o p e r a t i n g . S t a t e d a n o t h e r w a y , a n a l y s t s will n e e d to c o n s i d e r h o w t h e e c o n o m i e s a r e a c t u a l l y w o r k i n g , r a t h e r t h a n a s s u m i n g they b e l o n g t o s o m e broad classification with essentially p r e d e f i n e d attributes. W h a t , then, w o u l d an a n a l y s i s of n o n f a r m e m p l o y m e n t n e e d to e n c o m p a s s ? T h e s t u d i e s in t h i s v o l u m e a d d r e s s s u c h i s s u e s a s a c c e s s to a g r a r i a n land, i n c o m e and population pressures on w a g e s and h o u s e h o l d welfare, t h e pull of u r b a n a n d i n d u s t r i a l d e v e l o p m e n t , a n d t h e g r o w t h of r e g i o n a l economies—central topics for most contemporary development theory foc u s e d o n rural t r a n s f o r m a t i o n i s s u e s . H o w e v e r , w h a t also c o m e s o u t very s t r o n g l y f r o m the s t u d i e s is the j u x t a p o s i t i o n of t w o p r o c e s s e s that, t h o u g h r e l a t e d to the central c o n c e r n s of m o s t t h e o r y , m a y a l s o i n d i c a t e o t h e r , dist i n c t i v e c o n c e r n s . I n d e e d , t h e y r a i s e t h e q u e s t i o n s of w h e t h e r a n d w h e n n o n f a r m e m p l o y m e n t d i f f e r e n t i a t i o n is a s s o c i a t e d w i t h " o l d " e c o n o m i e s ( a n d e c o n o m i c s ) a n d w h e n it is b e t t e r a s s o c i a t e d w i t h " n e w " e c o n o m i e s (and economics). T h e f i r s t p r o c e s s is the g r o w t h of a s e r v i c e e c o n o m y in r u r a l a r e a s . T h e s e c o n d is the f e m i n i z a t i o n of r u r a l n o n f a r m l a b o r . T h e t w o p r o c e s s e s are not n e c e s s a r i l y r e l a t e d , n o r a r e they n e w in t e r m s of i n c i d e n c e . But it is i m p o r t a n t to r e c o g n i z e that t h e s e t w o p r o c e s s e s t o g e t h e r a p p e a r to be d o m i n a t i n g — n o t s i m p l y c h a r a c t e r i z i n g — t h e g r o w t h of n o n f a r m e m p l o y m e n t in rural a r e a s . T h i s c o m b i n a t i o n of p r o m i n e n c e a n d j u x t a p o s i t i o n has potentially important theoretical implications. T h e g r o w t h of a rural s e r v i c e e c o n o m y is an i m p o r t a n t o u t c o m e , but in s o m e w a y s ( f o r m u c h d e v e l o p m e n t t h e o r y ) , it is a l s o an a n o m a l o u s o n e .

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T h e service sector is seen, in many cases, as a tertiary sector that appears after and under agriculture and m a n u f a c t u r i n g — i n terms of both sequence and d e v e l o p m e n t a l s i g n i f i c a n c e . From this p e r s p e c t i v e , the growth of a service sector in the context of a p r e d o m i n a n t l y agrarian rural e c o n o m y a p p e a r s implausible, e x c e p t f o r the most basic kinds of services (e.g., household services for the wealthy). Nevertheless, as seen especially in the chapters on Bangladesh and Indonesia, a complex rural service economy is appearing throughout the region. And in some ways, it is distinct f r o m the e m p l o y m e n t growth in m a n u f a c t u r i n g in rural areas that has received more attention in assessments of nonfarm e m p l o y m e n t . What is the significance of this service e c o n o m y ? Is it a rurally based service e c o n o m y , or is it an essentially urban or national service economy in rural areas? Is this service e c o n o m y an o f f s h o o t of the agrarian econo m y — s o m e t h i n g that might better be called o f f - f a r m rather than nonfarm e m p l o y m e n t ? Is it a precursor of the urban e c o n o m y — f o r e x a m p l e , through extension of the urban informal e c o n o m y into rural areas? It is not clear w h e t h e r there is or should be a uniform a n s w e r to any of these questions, but in weighing the conceptual significance of nonfarm e m p l o y m e n t in rural areas, we cannot ignore these questions and the significance of diversity. For instance, is wage e m p l o y m e n t in the service sector a case of p r o l e t a r i a n i z a t i o n — a conclusion that might f o l l o w f r o m the a s s u m p t i o n that the service economy is a form of protocapitalism. Or are e m p l o y m e n t relations in the rural service sector a case of n e o f e u d a l i s m — a conclusion that might follow from the assumption that precapitalist agrarian relations dominate the service e c o n o m y ? T h e answer (which need not be limited to the proletarianization or neofeudalism choice) would appear to depend on what the nature of a s p e c i f i c service e c o n o m y is, what the sociopolitical structure in which it is e m b e d d e d is, and, at the least, how the service e c o n o m y actually relates to both the agrarian and m a n u f a c t u r i n g sectors through both labor and capital markets. T h e feminization of rural n o n f a r m labor is a s e c o n d development. In one sense, this development has been far better d o c u m e n t e d than the first process. T h e r e is evidence in the literature and in the studies in this volume (e.g., the chapters on Bangladesh, India, and Malaysia) that the f e m inization of rural n o n f a r m labor may be highly correlated with recent growth of the rural service e c o n o m y . Yet it is not clear that the two processes are interchangeable (i.e., that the growth of the rural service sector is the feminization of rural n o n f a r m labor) or that they are parts of some single larger process of gender-based e m p l o y m e n t differentiation. In the Philippines and Thailand, for example, the two processes do appear to be closely related—that is, both the rural service economy and the gender characteristics of n o n f a r m and o f f - f a r m rural e m p l o y m e n t are significantly feminized. However, there are also clearly complex relationships between the " p u s h " coming f r o m processes of agrarian differentiation and

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t h e " p u l l " c o m i n g f r o m n o n a g r a r i a n s o u r c e s in b o t h u r b a n a n d rural a r e a s . F o r e x a m p l e , t h e r e is i m p o r t a n t e v i d e n c e o f t h e f e m i n i z a t i o n of the u r b a n s e r v i c e a n d m a n u f a c t u r i n g s e c t o r s in t h e P h i l i p p i n e s a n d T h a i l a n d , e s p e c i a l l y in t h e m o r e l a b o r - i n t e n s i v e i n d u s t r i e s ( e . g . , t e x t i l e s ) . T h e s e c o m p l e x i t i e s c a n a l s o b e s e e n in t h e a n a l y s e s of B a n g l a d e s h , I n d i a , a n d M a l a y s i a , b u t t h e r e , t h e f e m i n i z a t i o n of r u r a l l a b o r a p p e a r s t o be m o r e c l o s e l y r e l a t e d to f u n d a m e n t a l p r o c e s s e s of social m o b i l i z a t i o n and p o l i t i cal d i f f e r e n t i a t i o n in rural a r e a s . T h e g r o w t h of rural s e r v i c e e c o n o m i e s is n o t u n r e l a t e d , b u t it a p p e a r s , at least in p a r t , to b e t h e result of d i s t i n c t p r o c e s s e s of e c o n o m i c d i f f e r e n t i a t i o n . T h e s t u d i e s e x p l o r e r e a s o n s f o r the f e m i n i z a t i o n of rural labor that a r e i n d e p e n d e n t of the s e r v i c e e c o n o m y . T h e s e p r i m a r y r e a s o n s are tied to iss u e s a d d r e s s e d e a r l i e r in this c h a p t e r , in t h e s e c t i o n on m a c r o - m i c r o relat i o n s h i p s . T h e y i n c l u d e the w e a k e n i n g s o l i d a r i t y of rural c o m m u n i t i e s a n d h o u s e h o l d s — a d e v e l o p m e n t that h o l d s b o t h p r o m i s i n g a n d p r o b l e m a t i c i m p l i c a t i o n s f o r rural w e l f a r e g e n e r a l l y a n d f o r the l e g i t i m a c y of e x i s t i n g rural p o w e r r e l a t i o n s h i p s in p a r t i c u l a r . In s o m e i n s t a n c e s , f a c t o r s like t h e c h a n g i n g c h a r a c t e r i s t i c s of t h e c o m m u n i t y a n d the h o u s e h o l d , as well a s f a c t o r s such like n a r r o w i n g a c c e s s to land, s t a g n a n t g r o w t h in a g r i c u l t u r a l p r o d u c t i v i t y , a n d i n c r e a s e d m o b i l i t y f a c i l i t a t e d by a c c e s s to t r a n s p o r t a t i o n and e d u c a t i o n , h a v e increased the possibilities for b r e a k i n g preexisting f o r m s of k i n s h i p - b a s e d and g e n d e r - b a s e d s t r a t i f i c a t i o n . W h a t the s t u d i e s i n d i c a t e , in m a n y c a s e s , is that g e n d e r s t r a t i f i c a t i o n in t e r m s of the d i v i s i o n of labor m a y be b r e a k i n g . T h e r e is e v i d e n c e of inc r e a s i n g f e m a l e o c c u p a t i o n a l m o b i l i t y . T h e q u e s t i o n of the s t a t u s of k i n s h i p - b a s e d s t r a t i f i c a t i o n is less c e r t a i n , c a u g h t u p as it is in the c h a n g i n g s i g n i f i c a n c e of t h e rural h o u s e h o l d . M o r e o v e r , it is not a l w a y s c l e a r w h e t h e r h i g h l e v e l s of f e m a l e p a r t i c i p a t i o n in n o n f a r m e m p l o y m e n t d i f f e r e n t i a t i o n r e f l e c t a f o r m of liberation or w h e t h e r , q u i t e the r e v e r s e , f e m i n i z a t i o n of rural n o n f a r m labor r e f l e c t s a p r o c e s s in w h i c h the b u r d e n s f o r h o u s e h o l d s u r v i v a l a r e b e i n g p l a c e d i n o r d i n a t e l y o n the s h o u l d e r s of w o m e n . I n d e e d , t h e s t u d i e s point o u t that t h o u g h t r a d i t i o n a l g e n d e r - b a s e d d i v i s i o n s of l a b o r m a y b e w e a k e n i n g in t e r m s of w h a t w o r k w o m e n do, the g e n d e r - b a s e d h i e r a r c h i e s t h a t g o v e r n r e l a t i v e a u t o n o m i e s of c h o i c e in l a b o r a l l o c a t i o n a r e not n e c e s s a r i l y w e a k e n i n g at the s a m e p a c e . H o w e v e r , it is p r e c i s e l y the latter that a r e b e i n g c o n t e s t e d . H e r e a g a i n , w e m u s t be w a r y of s i m p l e c o n c l u s i o n s a n d f o r m u l a s . In the s t u d i e s in this v o l u m e , the a n s w e r a p p e a r s to b e that in s o m e c a s e s , the f e m i n i z a t i o n of r u r a l n o n f a r m l a b o r m a y p o t e n t i a l l y b e a f o r m of l i b e r a tion; in o t h e r c a s e s , it m a y w e l l b e a c o n t i n u i n g a n d m o r e i n t e n s i v e r e p r o d u c t i o n of e x i s t i n g s t r a t i f i c a t i o n a r r a n g e m e n t s . T h e s t u d i e s a r e less c e r t a i n a b o u t the t r a j e c t o r y of t h e s e r v i c e e c o n o m y . B u t h e r e , t o o , t h e a n a l y s e s s u g g e s t that in s o m e c i r c u m s t a n c e s , the s e r v i c e e c o n o m y — w h a t e v e r its o r i g i n s a n d l i n k a g e s — m a y b e a v e h i c l e of t r a n s i t i o n b e t w e e n an a g r a r i a n

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e c o n o m y a n d an i n d u s t r i a l o n e . In m o s t c a s e s , h o w e v e r , t h e rural s e r v i c e e c o n o m y is s e e n a s p r o b l e m a t i c in t e r m s of e m p l o y m e n t c o n d i t i o n s a n d relations. M o v i n g b e y o n d t h e n e e d to e x a m i n e t h e r e l a t i o n s h i p s b e t w e e n t h e s e t w o p r o c e s s e s m o r e c a r e f u l l y , a c a r e f u l a s s e s s m e n t of t h e t h e o r e t i c a l s i g n i f i c a n c e of n o n f a r m w o r k in rural a r e a s c a n n o t i g n o r e the p r i n c i p a l a r e n a s in w h i c h t h i s d i f f e r e n t i a t i o n p l a y s o u t . W h e n w e d i s c u s s e d m a c r o - m i c r o r e l a t i o n s h i p s , w e s u g g e s t e d that this w a s a c o n t e x t f o r e m p l o y m e n t d i f f e r e n t i a t i o n — a c o n t e x t that n e e d s to be b o t h t h e o r i z e d a n d d o c u m e n t e d o n its o w n m e r i t s . H e r e , w e c o m e t o a s i m i l a r c o n c l u s i o n . P r o c e s s e s of f e m i n i z a t i o n of r u r a l l a b o r a n d p r o c e s s e s a s s o c i a t e d w i t h t h e e m e r g e n c e of a s e r v i c e e c o n o m y in rural a r e a s m a y be v e r y logical e x t e n s i o n s of e x i s t i n g d i f f e r e n t i a t i o n p r o c e s s e s in a g r a r i a n or n a t i o n a l e c o n o m i e s . But it is a l s o p o s s i b l e that the e m e r g e n c e of s e r v i c e e c o n o m i e s in a g r a r i a n s e t t i n g s a n d t h e f e m i n i z a t i o n of n o n f a r m l a b o r i n d i c a t e i m p o r t a n t d i s c o n t i n u i t i e s in rel a t i o n s h i p s b e t w e e n the e v o l u t i o n of rural social s t r u c t u r e a n d p r o c e s s e s of a g r a r i a n d i f f e r e n t i a t i o n , to c i t e o n e e x a m p l e . S e r v i c e e c o n o m i e s m u s t be b e t t e r d o c u m e n t e d a n d better t h e o r i z e d , a n d as part of that p r o j e c t , a b e t t e r u n d e r s t a n d i n g of t h e t h e o r e t i c a l s i g n i f i c a n c e of n o n f a r m e m p l o y m e n t is likely to f o l l o w . It s h o u l d a l s o be p o i n t e d o u t that the o u t c o m e s of s u c h an u n d e r s t a n d i n g w o u l d h a v e s i g n i f i c a n t i m p l i c a t i o n s f o r the d e s i g n and m a n a g e m e n t of p o l i c i e s a n d p r o g r a m s to i m p r o v e the s t a t u s of w o m e n a n d the p r o d u c t i v ity of r u r a l e m p l o y m e n t . M i r i a m S h a r m a ' s c a s e s t u d y is e s p e c i a l l y ins t r u c t i v e in this r e g a r d . A n i n t e r v e n t i o n ( O p e r a t i o n F l o o d ) w a s d e s i g n e d , in part, to s t r e n g t h e n the e c o n o m i c i n d e p e n d e n c e of rural w o m e n , but the p o l i c y w a s d r i v e n m o r e by e x t e r n a l n o r m a t i v e e x p e c t a t i o n s than by a real u n d e r s t a n d i n g of the p o l i t i c a l d y n a m i c s of g e n d e r - b a s e d l a b o r d i f f e r e n t i a tion in rural c o m m u n i t i e s . M o r e g e n e r a l l y , the s t u d i e s s u g g e s t that it is i m p o r t a n t to u n d e r s t a n d t h e s t r u c t u r e s a n d p r o c e s s e s t h r o u g h w h i c h s p e c i f i c p a t t e r n s of n o n f a r m labor d i f f e r e n t i a t i o n are u n f o l d i n g b e f o r e c o n s i d e r i n g w e l l - i n t e n t i o n e d p r o c e s s e s of i n t e r v e n t i o n . For i n s t a n c e , a s i m p l i e d in t h e chapters on B a n g l a d e s h , India, and Malaysia, there are important issues a s s o c i a t e d with the q u e s t i o n of w h e t h e r a d d i t i o n a l i n s t i t u t i o n s a r e n e e d e d to e n s u r e that r u r a l w o m e n a r e s t r e n g t h e n i n g t h e i r a u t o n o m y r a t h e r t h a n their d e p e n d e n c e .

New Economies or New

Economics?

T h e s u g g e s t i o n that the g r o w t h of t h e s e r v i c e e c o n o m y in rural a r e a s a n d t h e i n c r e a s i n g f e m i n i z a t i o n of r u r a l n o n f a r m l a b o r a r e " n e w " e c o n o m i e s m a y a p p e a r to b e an e x a g g e r a t i o n . It u n d o u b t e d l y is if t h e i m p l i c a t i o n is t h a t t h e s e t w o p r o c e s s e s a r e w i t h o u t h i s t o r i c a l a n t e c e d e n t s or that t h e y n e c e s s a r i l y r e p r e s e n t a b s o l u t e d i s c o n t i n u i t i e s w i t h p r e v i o u s f o r m s of

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economic organization and relations in rural areas. However, the characterization of these processes as " n e w " has important heuristic value. We should not underestimate the degree to which the major perspectives in development studies have imposed dichotomous interpretations on complex and diverse processes of e m p l o y m e n t differentiation, multiple forms of specialization, and the changing composition and significance of local institutions. The studies in this volume all point to complex processes that are the causes, contexts, and consequences of patterns of nonfarm employment differentiation. These processes are oriented to service sector occupations, workplaces, and employment relations, and they are strongly characterized by high levels of female participation. The studies suggest that though individual elements of these processes may not constitute new economies, the processes together may reflect new economics. T w o broad characteristics, in particular, of these new economics can be noted. First, reiterating a point made earlier about the emerging welfare crisis as both households and the state lose their capacities to ensure social security and normative stabilization, is the feminization of rural labor. As illustrated most vividly in the chapters on India and Malaysia, rural women are not simply playing larger roles as income earners through participation in nonfarm work; their load in terms of unpaid family labor may be growing as well. In effect, in the thinning domain created by the weakened roles of the household, community, and state, responsibilities for household reproduction, family security, and normative coherence are increasingly falling on females. As the India and Malaysia studies illustrate, this is independent of levels of agricultural performance, and it reflects broader processes of institutional change—including, in the Malaysian case, diversification activities by men. On the other hand, as suggested in the chapters on Bangladesh, China, the Philippines, and Thailand, stagnant or declining agricultural incomes certainly create conditions that place extraordinary pressures on rural w o m e n to both maintain core agricultural and family activities and provide outside income. Clearly, these processes associated with the feminization of rural labor demonstrate considerable diversity, and it is this diversity that suggests that we are facing new economics. Second, the studies suggest that these economics will be significantly characterized by complex macro-micro relationships and by the emergence of diverse intermediate forms of sociopolitical mobilization, cultural representation, and e c o n o m i c organization. For example, the Bangladesh, Malaysian, and Philippine studies show how m a c r o e c o n o m i c goals, adjustments, and biases influence the allocation of rural resources—land, labor, and capital—but also how these regimes are, themselves, influenced by the changing organization of power in rural areas. The chapters on China and the Philippines indicate how processes of circular rural-urban

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migration both caused and w e r e c a u s e d by patterns of industrialization, by the distribution of service sector o p p o r t u n i t i e s , and by the characteristics of agricultural p e r f o r m a n c e and agrarian relations. T h e c h a p t e r on I n d o n e s i a illustrates h o w interrelationships b e t w e e n a national political e c o n o m y and local p r o c e s s e s of e m p l o y m e n t d i f f e r e n t i a t i o n and r e s o u r c e allocation can be i n f l u e n c e d by political e c o n o m i e s that o p e r a t e at an intermediate level. T o u n d e r s t a n d the t h e o r e t i c a l s i g n i f i c a n c e of n o n f a r m e m p l o y m e n t g e n e r a l l y — a n d to u n d e r s t a n d the r e l a t i o n s h i p s b e t w e e n n o n f a r m e m p l o y m e n t , inequality, and p o v e r t y — i t is essential to reorient c o n c e p t u a l attention to these b r o a d e r m a c r o - m i c r o r e l a t i o n s h i p s and to an u n d e r s t a n d i n g of the s t r u c t u r e s and r e l a t i o n s in w h i c h n o n f a r m w o r k is e m b e d d e d in t e r m s of their actual political e c o n o m i e s , cultural motifs, and social p r o c e s s e s .

Agrarian Transformation, Work, and the East Asian Model D i s c u s s i o n s about the i n c i d e n c e a n d s i g n i f i c a n c e of e m p l o y m e n t d i f f e r e n tiation in rural Asia have been strongly i n f l u e n c e d by interpretations of the d e v e l o p m e n t e x p e r i e n c e s of J a p a n , K o r e a , a n d T a i w a n . Not s u r p r i s i n g l y , the e c o n o m i c s u c c e s s e s in these c o u n t r i e s have s p a w n e d n u m e r o u s a n a l y ses s e e k i n g to identify the r e a s o n s for such s u c c e s s e s . T h e s e analyses h a v e paid s u b s t a n t i a l attention to p r o c e s s e s of rural t r a n s f o r m a t i o n a n d i n d u s t r i a l i z a t i o n . S u b s e q u e n t l y , m a n y a n a l y s t s h a v e b e e n t e m p t e d to hold out the e x p e r i e n c e s first of J a p a n , then of T a i w a n and Korea as b l u e p r i n t s or m o d e l s , of sorts, in t e r m s of the " s t a g e s of d e v e l o p m e n t " t h r o u g h w h i c h other parts of Asia p r e s u m a b l y w o u l d (or c o u l d ) pass. T h e y are also seen as m o d e l s f o r the c h o i c e a n d s e q u e n c i n g of e c o n o m i c policies d u r i n g the c o u r s e of e c o n o m i c d e v e l o p m e n t — s u p p o s e d l y , to e n s u r e that the p a s s a g e is s m o o t h . 1 G i v e n the variety of d e v e l o p m e n t e x p e r i e n c e s t h r o u g h o u t A s i a , p a r ticularly the variety of c o n d i t i o n s u n d e r w h i c h apparently similar develo p m e n t p r o c e s s e s are u n f o l d i n g , it is a r g u a b l e w h e t h e r t h e r e is a v i a b l e c o m m o n a n a l y t i c a l f r a m e w o r k w i t h i n w h i c h to e x a m i n e East, S o u t h e a s t , and S o u t h Asia. Indeed, there are s t r o n g reasons to q u e s t i o n even the pres u m e d h o m o g e n e i t y of the e x p e r i e n c e s in J a p a n , Korea, and T a i w a n ( K o p pel, 1993). H e n c e , it is an o v e r s i m p l i f i c a t i o n to r e f e r in any narrow s e n s e to an " E a s t A s i a n m o d e l , " e s p e c i a l l y for p u r p o s e s of i n t e r p r e t i n g e m p l o y ment d i f f e r e n t i a t i o n in the rest of rural Asia. N e v e r t h e l e s s , can an e x a m i nation of p r o m i n e n t a s p e c t s of the v a r i e d d e v e l o p m e n t e x p e r i e n c e s in J a p a n , T a i w a n , and K o r e a p r o v i d e s o m e instructive points for u n d e r s t a n d ing rural d e v e l o p m e n t t r a j e c t o r i e s e l s e w h e r e in A s i a ? G i v e n the popularity of the East A s i a n m o d e l , in p a r t i c u l a r , as a basis f o r e x p l o r i n g the s i g n i f i cance of n o n f a r m e m p l o y m e n t in S o u t h and S o u t h e a s t A s i a , it is i m p o r t a n t to seriously c o n s i d e r this q u e s t i o n .

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The Argument for an East Asian Model W h a t f o l l o w s is a s t y l i z e d s u m m a r y o f t h e a r g u m e n t f o r a n E a s t A s i a n t r a n s f o r m a t i o n m o d e l a n d f o r its r e p r o d u c i b i l i t y in o t h e r p a r t s of A s i a . F a r r e a c h i n g r e d i s t r i b u t i v e l a n d r e f o r m s in t h e l a t e 1 9 4 0 s a n d e a r l y 1 9 5 0 s p r e c e d e d t h e r a p i d p o s t w a r i n d u s t r i a l i z a t i o n of J a p a n , K o r e a , a n d T a i w a n . T h e l a n d r e f o r m s u l t i m a t e l y c r e a t e d a r e l a t i v e l y e q u i t a b l e d i s t r i b u t i o n of r u r a l a s s e t s a n d a u n i m o d a l p a t t e r n of l a n d d i s t r i b u t i o n , c h a r a c t e r i z e d by s m a l l o w n e r - o p e r a t e d f a r m s . A f o c u s on a g r i c u l t u r e (rather than an i n d u s t r i a l ization " p u l l " s t r a t e g y ) w a s , to a s i g n i f i c a n t extent, n e c e s s i t a t e d by the s c a r c i t y of o t h e r n a t u r a l r e s o u r c e s that c o u l d b e e x p l o i t e d t o g e n e r a t e f o r eign exchange and drive e c o n o m i c recovery. T h e unimodal pattern meant t h a t g a i n s f r o m t h e d i f f u s i o n of t e c h n o l o g i c a l i m p r o v e m e n t s ( e . g . , b e t t e r r i c e v a r i e t i e s ) a n d t h e i m p r o v e m e n t of l a n d i n f r a s t r u c t u r e ( e . g . , i r r i g a t i o n ) were spread a m o n g many farm households. T h e rapid postwar growth and i n d u s t r i a l i z a t i o n of J a p a n , T a i w a n , a n d K o r e a a r e e x p l a i n e d , in p a r t , b y t h e i r s u c c e s s in r a i s i n g a g r i c u l t u r a l p r o d u c t i v i t y a n d r u r a l i n c o m e s . A l t h o u g h g r o w t h in a g r i c u l t u r a l p r o d u c t i v i t y w a s , in o n e s e n s e , a c o n s e q u e n c e of a g r a r i a n r e f o r m , in a n o t h e r s e n s e , it w a s a l s o a n i m p o r t a n t r e a s o n w h y t h e r e f o r m s c o u l d b e s u c c e s s f u l . G r a d u a l i m p r o v e m e n t in a g r i c u l t u r a l t e c h n o l o g y a n d i n f r a s t r u c t u r e a n d , e s p e c i a l l y in J a p a n , t h e p r i o r e v o l u t i o n of a t e c h n o l o g y s u p p o r t s y s t e m r e s p o n s i v e a n d e v e n a c c o u n t a b l e to i n d e p e n d e n t f a r m e r a s s o c i a t i o n s laid a firm f o u n d a t i o n for s u s t a i n e d g r o w t h in p r o d u c t i v i t y . M o r e o v e r , an i m p o r t a n t t h e m e in t h e e v o l u t i o n of t e c h n o l o g i e s and t e c h n o l o g y c h o i c e s w a s the intensive d e m a n d for a n d supply of inputs, w h i c h c o m p e n s a t e d for the limited s u p p l i e s of a g r i c u l tural land and i m p r o v e d the p r o d u c t i v i t y of labor inputs into a g r i c u l t u r e ( H a y a m i , 1964 and 1967; Hayami and Ruttan, 1970; O h k a w a , Johnston, and Kaneda, 1969). L a n d r e f o r m , w h i c h a c t u a l l y o c c u r r e d in J a p a n in s e v e r a l s t e p s b e f o r e a n d d u r i n g W o r l d W a r II, a n d t h e p o s t w a r f i a t t h a t h a s r e c e i v e d t h e m o s t a t t e n t i o n t o o k p l a c e a g a i n s t t h e b a c k g r o u n d of t h i s e s t a b l i s h e d p r o d u c t i o n s u p p o r t s y s t e m . T h e p o s t r e f o r m g r o w t h in a g r i c u l t u r a l p r o d u c t i o n , l a b o r p r o d u c t i v i t y , and f a r m i n c o m e s s t i m u l a t e d the d e v e l o p m e n t of p o s i t i v e linkages between agriculture and other sectors. Initially, these linkages t o o k t h e f o r m of i n c r e a s e d d e m a n d f o r a g r i c u l t u r a l i n p u t s a n d s e r v i c e s . A s both rural i n c o m e s a n d farm p r o d u c t i v i t y rose, d e m a n d for

consumer

g o o d s also grew, as did savings and investment. T h e savings and investm e n t f i n a n c e d v a r i o u s t y p e s of n o n a g r i c u l t u r a l d e v e l o p m e n t ,

including

higher education and off-farm labor mobility for family m e m b e r s . With the rise of agricultural labor p r o d u c t i v i t y and the i n c r e a s i n g d e m a n d for nonagricultural g o o d s and services by farm households, farm household m e m b e r s b e c a m e i n v o l v e d in n o n a g r i c u l t u r a l e m p l o y m e n t in o r d e r t o s u p plement family income.

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S o m e important d i f f e r e n c e s a m o n g the three cases should also be n o t e d . J a p a n n o t o n l y i n i t i a t e d its g r o w t h p r o c e s s m u c h e a r l i e r t h a n e i t h e r K o r e a o r T a i w a n , it w a s a l s o v a s t l y d i f f e r e n t in t e r m s o f p o p u l a t i o n s i z e a n d g r o w t h . P o p u l a t i o n g r o w t h in J a p a n h a d b e e n a little m o r e t h a n 1 p e r c e n t s i n c e b e f o r e t h e t u r n o f t h e c e n t u r y , a n d f r o m t h e 1 9 5 0 s o n , it h a s c o n t i n u e d t o d e c e l e r a t e ( I t o , 1 9 9 2 : 1 7 ) . T h e s l o w e r g r o w t h of p o p u l a t i o n m e a n t there w a s less p r e s s u r e to e x p a n d f o o d p r o d u c t i o n rapidly ( e x c e p t d u r i n g t h e w a r y e a r s , w h e n t h e n e e d t o p r o d u c e f o o d w a s o n e of t h e f a c tors l e a d i n g to the 1 9 4 3 land r e f o r m ) . A g r i c u l t u r a l t e c h n o l o g y w a s adv a n c e d e n o u g h t h a t r i c e y i e l d s in J a p a n d u r i n g t h e M e i j i e r a w e r e a l r e a d y h i g h e r t h a n in m o s t A s i a n c o u n t r i e s in t h e 1 9 6 0 s . In t h e 1 9 5 0 s , J a p a n w a s w e l l a h e a d of T a i w a n a n d K o r e a in s c i e n c e a n d t e c h n o l o g y , e d u c a t i o n l e v e l s , a n d i n d u s t r i a l c a p a b i l i t i e s , a n d o v e r 8 0 p e r c e n t of its e x p o r t s w e r e m a n u f a c t u r e d g o o d s b y 1 9 5 5 . A g r i c u l t u r e r e q u i r e d a s m a l l e r p r o p o r t i o n of i n v e s t m e n t in J a p a n , w h i c h h a d a l r e a d y a c h i e v e d a h i g h s a v i n g s r a t e a n d had well-established fiscal capabilities. Furthermore, J a p a n ' s postwar political stability and external s e c u r i t y w e r e u n d e r w r i t t e n by the

United

S t a t e s , a n d it w a s u n d e r l e s s i m m e d i a t e d a n g e r f r o m an e x t e r n a l t h r e a t t h a n e i t h e r T a i w a n or K o r e a . By 1960, a g r i c u l t u r e a c c o u n t e d f o r only 13 perc e n t o f G D P , a n d l e s s t h a n a q u a r t e r of J a p a n ' s w o r k f o r c e w a s e m p l o y e d in a g r i c u l t u r e , c o m p a r e d to half o r m o r e in K o r e a a n d T a i w a n . J a p a n a l s o h a d a f a r l a r g e r i n t e r n a l m a r k e t , a n d its m a n u f a c t u r i n g i n d u s t r y c o u l d b e developed through import-substitution and domestic d e m a n d growth for a longer period. With smaller and poorer populations, T a i w a n and Korea did n o t h a v e l a r g e i n t e r n a l m a r k e t s , a n d in g e n e r a l , t h e y s t a r t e d o u t in w e a k e r positions than Japan. T h e n e w g o v e r n m e n t on T a i w a n f a c e d i m m e d i a t e , pressing p r o b l e m s of h i g h i n f l a t i o n , l o w s a v i n g s , an a b s e n c e of a n y i n d u s t r i a l b a s e , a n d a c u t o f f of t r a d e w i t h its m a j o r s o u r c e s o f s u p p l y a n d m a r k e t s ( n a m e l y , M a i n l a n d C h i n a a n d J a p a n ) . It o v e r c a m e e a c h o f t h e s e i m m e d i a t e t h r e a t s a n d f o c u s e d e f f o r t s o n s t i m u l a t i n g a g r i c u l t u r a l p r o d u c t i o n to f e e d a p o p u l a t i o n that h a d i n c r e a s e d a l m o s t o v e r n i g h t b y o n e - t h i r d a n d t h a t w a s g r o w i n g at a n a n n u a l r a t e of o v e r 3 p e r c e n t . T h e n a t i o n a l i s t g o v e r n m e n t o n T a i w a n m o v e d q u i c k l y to i n s t i t u t e l a n d r e f o r m a n d t o c u r b i n f l a t i o n ( M y e r s , 1 9 9 1 ) . T h e e a r l y e m p h a s i s o n l a n d r e f o r m , o n i m p r o v e m e n t s in a g r i c u l t u r e i n f r a structure, and on d i f f u s i n g technology rapidly to small, family-operated f a r m s paid off. Not only did increased output m e e t the d e m a n d of a g r o w i n g p o p u l a t i o n , it a l s o w a s s u f f i c i e n t t o o b v i a t e t h e n e e d f o r f a r m i m p o r t s ; after a short period, production spilled over into exports. Unlike Japan, which already had a formidable manufacturing base for the development of e x p o r t s , T a i w a n h a d n e g l i g i b l e i n d u s t r i a l c a p a c i t y in t h e e a r l y 1 9 5 0 s , p o s s e s s i n g o n l y f o o d - p r o c e s s i n g a n d s u g a r - r e f i n i n g f a c i l i t i e s . In t h e 1 9 5 0 s , o v e r 9 0 p e r c e n t of T a i w a n ' s e x p o r t s c o n s i s t e d o f a g r i c u l t u r a l p r o d u c t s a n d processed agricultural goods.

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T a i w a n b e g a n to t u r n o u t w a r d w i t h t r a d e l i b e r a l i z a t i o n , a n d u n i f i c a tion, a n d d e v a l u a t i o n of t h e e x c h a n g e r a t e in 1 9 5 8 . B y that t i m e , a g r i c u l tural d e v e l o p m e n t h a d c o n t r i b u t e d to an i m p r o v e d s a v i n g s rate, a h e a l t h ier tax r e v e n u e b a s e , a g r e a t e r e x p o r t c a p a c i t y , a n d w i d e r internal m a r k e t s . T h e u n i m o d a l p a t t e r n of a g r i c u l t u r a l d e v e l o p m e n t in T a i w a n m a x i m i z e d positive intersectoral linkages and stimulated industrial growth. Once Taiw a n ' s i n d u s t r i a l i z a t i o n t u r n e d o u t w a r d , d r a m a t i c g r o w t h in o f f - f a r m e m p l o y m e n t o c c u r r e d b e c a u s e of t h e b o o m in t h e e x p o r t of l a b o r - i n t e n s i v e , m a n u f a c t u r e d p r o d u c t s — t e x t i l e s , clothing, and various r e s o u r c e - b a s e d m a n ufactures ( J a m e s , N a y a , and Meier, 1989: 3 1 - 3 9 ) . F a r m e r s could readily substitute m a c h i n e r y f o r labor in f a r m o p e r a t i o n s f o r they n o w had a d e q u a t e inc o m e s , skills, and s a v i n g s to d o so ( H o , 1979). M e a n w h i l e , f a r m h o u s e h o l d s could d i v i d e their t i m e b e t w e e n f a r m and factory e m p l o y m e n t . T h e p h e n o m enon of p a r t - t i m e f a r m i n g began to e m e r g e , as it had earlier in J a p a n . K o r e a w a s e v e n p o o r e r than T a i w a n in t h e i m m e d i a t e p o s t w a r y e a r s . T h e c o n f l i c t on the K o r e a n P e n i n s u l a e n d e d in a s t a l e m a t e in 1 9 5 3 a n d left the K o r e a n r e p u b l i c in d e v a s t a t i o n . K o r e a h a d a l a r g e r p o p u l a t i o n ( a b o u t 2 0 m i l l i o n ) t h a n T a i w a n b u t e v e n less of a f u n c t i o n i n g i n d u s t r i a l a n d inf r a s t r u c t u r e b a s e . Its s a v i n g s rate w a s l o w e r t h a n T a i w a n ' s a n d , as late as 1960, w a s o n l y 1 p e r c e n t of G D P . Its tax s y s t e m a n d f i n a n c i a l s e c t o r w e r e similarly underdeveloped. Although Korea introduced agrarian reform q u i c k l y , in o t h e r r e s p e c t s it l a g g e d b e h i n d T a i w a n in a g r i c u l t u r a l a n d industrial d e v e l o p m e n t . In t h e e a r l y 1 9 6 0 s , a g r i c u l t u r e still a c c o u n t e d f o r a f a r l a r g e r s h a r e of its G D P t h a n did i n d u s t r y , i n c l u d i n g m a n u f a c t u r i n g , utilities, a n d c o n s t r u c t i o n . In c o n t r a s t , i n d u s t r y s u p e r s e d e d a g r i c u l t u r e in s h a r e of G D P f o r T a i w a n by 1960. E v e n as late as 1970, 5 0 p e r c e n t of K o r e a ' s labor f o r c e w a s e n g a g e d in a g r i c u l t u r e , c o m p a r e d to o n l y 3 7 p e r c e n t in T a i w a n a n d 19 p e r c e n t in J a p a n . K o r e a w a s late in i n t r o d u c i n g i m p r o v e d rice v a r i e t i e s in c o m p a r i s o n to T a i w a n . It e x p e r i e n c e d its m o s t r a p i d p e r i o d of a g r i c u l t u r a l p r o d u c t i o n g r o w t h in t h e 1 9 6 0 s , w h e n it b e g a n to i n t r o d u c e i m p r o v e d v a r i e t i e s in e a r n e s t . T h e s t r o n g g r o w t h of a g r i c u l t u r e in t h e 1 9 6 0 s c o i n c i d e d w i t h K o r e a ' s r e o r i e n t a t i o n of i n d u s t r y to e x p o r t m a r k e t s . A g r i c u l t u r e a n d o t h e r prim a r y g o o d s , w h i c h c o n t r i b u t e d o v e r 8 0 p e r c e n t of e x p o r t s in 1 9 6 0 , c o n t r i b u t e d l e s s t h a n 10 p e r c e n t in 1 9 7 0 — r e f l e c t i n g t h e s u r g e of K o r e a ' s m a n u f a c t u r i n g e x p o r t s . Its a g r i c u l t u r a l g r o w t h m o r e n e a r l y p a r a l l e l e d its i n d u s t r i a l i z a t i o n d r i v e , r a t h e r t h a n p r e c e d i n g it. N o n e t h e l e s s , the p r e c o n d i t i o n s f o r s u c c e s s in a t t a i n i n g h i g h g r o w t h in a g r i c u l t u r a l p r o d u c t i o n a n d p r o d u c t i v i t y w e r e e s t a b l i s h e d in e a r l i e r d e c a d e s . T h e s e i n c l u d e d an e d u cated p e a s a n t r y , rural i n f r a s t r u c t u r e , a n d e x p e r i e n c e with h i g h e r use of f a r m inputs like f e r t i l i z e r . I n c e n t i v e s to i m p r o v e d a g r i c u l t u r a l p r o d u c t i v i t y w e r e l i k e w i s e s l o w e r to b e i n t r o d u c e d in K o r e a t h a n in J a p a n or T a i w a n . H o w e v e r , w h e n the e x c h a n g e rate a n d o t h e r p r i c i n g r e f o r m s w e r e i n t r o d u c e d in K o r e a in t h e early 1 9 6 0 s , t h e r e s p o n s e w a s e v e n m o r e d r a m a t i c t h a n it had

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been in Taiwan. By the mid-1970s, Korean rice yields were even higher than in Taiwan. T h e positive interactions of agricultural development and industrialization in Korea were evident in the 1960s and 1970s. The linkages between the growth of manufactured exports and the emergence of off-farm employment opportunities were significant but not to the same degree as they were in Taiwan (Fujita and James, 1990). There are rather substantial differences between Korea's and T a i w a n ' s paths out of poverty. Even with the urban real estate and stock market booms of the late 1980s, Taiwan maintained a more equitable distribution of income and wealth than Korea. T a i w a n ' s pattern of industrial development, like its agriculture, was based on small- and medium-sized, family-owned enterprises. In contrast, Korea concentrated its resources into large industrial conglomerates, the chaebols. Economic power has been more unevenly distributed in Korea than in Taiwan or Japan and is reflected in a less equitable distribution of income. Other important differences in the Korean experience are its lower household and domestic savings and its greater reliance, through the 1970s, on external financing of investment. The considerably larger external debt of Korea, as compared to Taiwan, is related directly to its choice of heavy industrial investments and its lower domestic savings in the 1970s.

The Lessons According to the Argument The importance of agricultural development for a successful transition to an industrial economy is underscored by the experience of most developing Asian countries. Without a prior and sustained period of agricultural growth that is reasonably broad based, industrialization tends to stagnate. Developing Asian economies that initially concentrated resources on industrial investment and biased macroeconomic policies against agriculture have ended up with less industrial development than others that first emphasized the growth and expansion of agriculture and ancillary activities in rural areas and that kept policies more or less neutral. 2 For example, both India and the Philippines adopted import-substitution industrialization strategies with policies strongly biased against agriculture in the 1950s (Power and Sicat, 1971; Mellor, 1976). The average annual real GDP growth rate of India was 4 percent during the Second Five-Year Plan ( 1 9 5 6 - 1 9 6 0 ) , which concentrated government efforts on heavy industry. Subsequently, real growth during the third plan ( 1 9 6 1 - 1 9 6 5 ) fell to 2.2 percent per annum. In the Philippines, growth declined f r o m about an 8 percent annual average rate in the period 1 9 5 0 - 1 9 5 6 to less than 5 percent from 1956 to 1970. In contrast, in Taiwan, where agricultural development was emphasized in the 1950s, real economic growth expressed as an average annual rate accelerated from 7.6 percent in the 1950s to almost 10 percent in the 1960s (Ranis, Fei, and Kuo, 1979; Kuo, 1981).

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O v e r a l o n g e r p e r i o d of t i m e , t h e r a t e of s t r u c t u r a l t r a n s f o r m a t i o n f r o m an a g r i c u l t u r a l - b a s e d e c o n o m y to an i n d u s t r i a l - b a s e d o n e h a s b e e n m o s t r a p i d in A s i a n c o u n t r i e s that h a v e s t r u c k a b a l a n c e b e t w e e n a g r i c u l tural d e v e l o p m e n t a n d p r o m o t i o n o f i n d u s t r y . J a p a n , T a i w a n , a n d K o r e a h a v e a c h i e v e d t h e h i g h e s t s h a r e s of i n d u s t r y in G D P a n d h a v e d o n e s o m o s t e x p e d i t i o u s l y , f o l l o w e d b y M a l a y s i a a n d T h a i l a n d . In c o n t r a s t , in t h e P h i l i p p i n e s a n d B u r m a , i n d u s t r i a l s h a r e s in G D P h a v e s t a g n a t e d o r e v e n d e c l i n e d o v e r t h e e n t i r e p e r i o d . In I n d i a a n d I n d o n e s i a , i n d u s t r i a l G D P shares increased very slowly b e t w e e n 1960 and 1970, but with m o r e fav o r a b l e a g r i c u l t u r a l d e v e l o p m e n t p e r f o r m a n c e s , the i n d u s t r i a l s e c t o r s h a r e rose sharply thereafter (Glassburner, 1985; Vyas and James, 1988). A s u b s t a n t i a l b o d y of l i t e r a t u r e , b o t h t h e o r e t i c a l a n d e m p i r i c a l , h a s evolved, providing analytical underpinnings and persuasive evidence for the relationships m e n t i o n e d earlier (e.g., Hsieh and Lee, 1966; J o h n s t o n and Kilby, 1975; Johnston and Mellor, 1961; Ho, 1979; O h k a w a and R o s o v s k y , 1973; L e e , 1971). T h e f o c u s has b e e n on the c o n t r i b u t i o n s a g r i cultural d e v e l o p m e n t can m a k e to o v e r a l l e c o n o m i c d e v e l o p m e n t . T h i s lite r a t u r e i d e n t i f i e s p o t e n t i a l l i n k a g e s b e t w e e n s e c t o r s that can t r a n s m i t t h e i m p u l s e s of g r o w t h . A s a g r i c u l t u r e d e v e l o p s a n d is c o m m e r c i a l i z e d , it exp a n d s the s u p p l y of w a g e g o o d s t o o t h e r s e c t o r s , p r o v i d e s i n c r e a s e d r a w m a t e r i a l i n p u t s , a n d p o t e n t i a l l y c o n t r i b u t e s s a v i n g s that c a n be r e i n v e s t e d in r a i s i n g a g r i c u l t u r a l p r o d u c t i v i t y f u r t h e r o r in n o n a g r i c u l t u r a l p r o d u c t i v e assets. It c a n also s a v e or earn f o r e i g n e x c h a n g e to f i n a n c e the i m p o r t a t i o n of capital g o o d s a n d o t h e r inputs. A n d as f a r m i n c o m e s rise, the m a r k e t f o r g o o d s and services produced by other sectors increases. T h e s e distinct c o n t r i b u t i o n s m a y r e c e i v e v a r y i n g e m p h a s e s , a c c o r d i n g to s p e c i f i c c o n d i t i o n s and p r i o r i t i e s ( M y i n t , 1 9 7 5 ; H a y a m i a n d R u t t a n , 1985).

Do the Lessons Apply to Other Parts of Asia? L a n d l e s s n e s s a n d p e r s i s t e n t rural p o v e r t y are c h a r a c t e r i s t i c s of l a r g e a r e a s in S o u t h a n d , t o a l e s s e r e x t e n t , S o u t h e a s t A s i a . A g r i c u l t u r a l l a n d p e r c a p i t a v a r i e s w i d e l y b e t w e e n a n d w i t h i n c o u n t r i e s . H o w e v e r , w i t h t h e exc e p t i o n s of M a l a y s i a a n d I n d o n e s i a ' s o u t e r islands, there is little a d d i t i o n a l l a n d a v a i l a b l e f o r i n t e n s i v e a g r i c u l t u r e . T h e d i s t r i b u t i o n of l a n d h o l d i n g s a l s o v a r i e s w i d e l y , b u t in m u c h of the r e g i o n , land o w n e r s h i p is f a r m o r e c o n c e n t r a t e d t h a n it w a s in E a s t A s i a — a p o i n t w i t h s i g n i f i c a n t i m p l i c a t i o n s f o r t h e p o l i t i c a l e c o n o m y of a g r i c u l t u r e a n d t h e f e a s i b i l i t y of ref o r m i n g that p o l i t i c a l e c o n o m y . N o w h e r e in S o u t h or S o u t h e a s t A s i a ( o u t side of V i e t n a m ) has r e d i s t r i b u t i v e l a n d r e f o r m b e e n e n a c t e d e f f e c t i v e l y on a s c a l e a n y t h i n g n e a r that s e e n in E a s t A s i a . M o r e o v e r , in S o u t h e a s t A s i a ( a n d also, to s o m e d e g r e e , in S o u t h A s i a ) , p l a n t a t i o n a g r i c u l t u r e , m i n i n g , a n d l o g g i n g p r o v i d e d a l t e r n a t i v e s o u r c e s of f o r e i g n e x c h a n g e a n d g o v e r n ment revenue. T h e presence of natural resource wealth and plantations,

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coupled with an uneven distribution of agricultural land, created a much different institutional and political environment for the introduction of new agricultural technology and infrastructure for small-farm cereal production in South and Southeast Asia than in Japan, Korea, or Taiwan. In South and Southeast Asia, the high-yielding varieties of rice seeds and associated capital inputs (such as chemicals, fertilizer, irrigation, and farm machinery) were often introduced into an environment where access to land, credit, and other resources was significantly uneven and biased in favor of large commercial farmers and landowners. The absence of a unimodal distribution of farms and a high incidence of tenants and landless rural labor meant that the introduction of new production technologies, even if widely d i f f u s e d across small and large farms alike, could widen rural inequalities. The commercial risks involved in financing and applying HYVs frequently meant that they were adopted earlier by larger farms, rather than small farms, thereby widening inequalities. In the worst case, in which successful adoption of H Y V s was limited to larger commercial farms and political power and economic power became more concentrated, there was a danger that additional polarization would occur. For example, the profitability of modern varieties could (and did) induce landowners in South and Southeast Asia to expand their holdings and increase the ranks of landless rural workers and submarginal peasants by replacing tenant farmers with hired wage laborers. The widespread adoption of inward-looking industrial and trade policies, together with later and more limited efforts to improve agricultural production, meant slow growth in productive nonagricultural employment, particularly in manufacturing. In terms of the patterns of industrial development, labor absorption by modern industry has been less pronounced in South and Southeast Asia than it was in East Asia at a similar level of industrial sector shares in GDP. The industrialization process in many South and Southeast Asian countries has been overly capital intensive; in addition, it has made inefficient use of capital investment. Once available arable land had been brought into cultivation, rural landless labor began to spill over into the tertiary (services) sector. Thus, the abnormal expansion of marginal employment in services that is seen in many urban settings in South and Southeast Asia is a manifestation of the poverty problem, rather than a sign of economic growth and development. To explore these points further, we examine two cases: the Philippines and Thailand. The Philippines. The Philippines stood out as one of the most industrialized developing countries in Asia in 1960. It had a high literacy rate and some of the highest school enrollment rates in the region. However, subsequent decades have seen almost no change in the sectoral composition of GDP (Koppel, 1992). The shift in the pattern of employment has mainly

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b e e n t o w a r d an a b n o r m a l e x p a n s i o n of s e r v i c e s e m p l o y m e n t as the r u r a l p o o r i n c r e a s i n g l y e n g a g e in m a r g i n a l a c t i v i t i e s in t h e i n f o r m a l s e r v i c e s sector. T h e P h i l i p p i n e s a d o p t e d i m p o r t - s u b s t i t u t i o n p o l i c i e s in t h e 1 9 5 0 s a n d s u s t a i n e d high e c o n o m i c g r o w t h d u r i n g that d e c a d e . H o w e v e r , it also p u r sued policies strongly biased against agriculture (Power and Sicat, 1971; B a u t i s t a , 1 9 8 6 ) . T h e result w a s r e p e a t e d b a l a n c e - o f - p a y m e n t s d i f f i c u l t i e s , e x c e s s i v e r e l i a n c e on e x t e r n a l b o r r o w i n g , a n d s l o w e r g r o w t h in the s u b s e q u e n t d e c a d e s . P r o t e c t e d m a n u f a c t u r i n g i n d u s t r i e s f a i l e d to c r e a t e m u c h e m p l o y m e n t , w h i c h m e a n t that a g r i c u l t u r e had to a b s o r b m u c h of a r a p i d l y growing labor force. D u r i n g t h e late 1 9 6 0 s , rice H Y V s w e r e a d o p t e d in the P h i l i p p i n e s , a n d a g r i c u l t u r a l g r o w t h rose. P o l i c i e s to i m p r o v e a g r i c u l t u r a l i n c e n t i v e s a n d to i n t r o d u c e land r e f o r m in t h e early 1 9 7 0 s s e e m e d to b r i g h t e n the c o u n t r y ' s p r o s p e c t s . H o w e v e r , the actual i m p l e m e n t a t i o n of land r e f o r m fell far short of the target ( K o p p e l , 1 9 8 7 ) . M a c r o e c o n o m i c p o l i c i e s i m p o r t a n t f o r m a i n t a i n i n g a g r i c u l t u r a l i n c e n t i v e s w e r e r e l a x e d or r e v e r s e d . T h e e x c h a n g e rate r e m a i n e d o v e r v a l u e d , i n f l a t i o n i n c r e a s e d , a n d c a u t i o n in f i s c a l policy g a v e w a y as e x t e r n a l b o r r o w i n g r o s e d u r i n g t h e p e r i o d l e a d i n g u p to t h e d e b t crisis in 1 9 8 3 . T h o u g h a g r i c u l t u r a l p r o d u c t g r e w at an a v e r a g e rate of better than 4 p e r c e n t , a g r i c u l t u r e c o u l d n o l o n g e r easily a b s o r b i n c r e m e n t s in a f a s t - g r o w i n g rural labor force. M a n u f a c t u r i n g and other industries emp l o y e d 13 p e r c e n t of t h e l a b o r f o r c e in 1 9 6 0 a n d t h e v e r y s a m e p e r c e n t a g e in 1987; the s h a r e e m p l o y e d by a g r i c u l t u r e d e c l i n e d f r o m 6 0 p e r c e n t to 4 5 p e r c e n t o v e r the s a m e p e r i o d . S e r v i c e s had to a b s o r b the d i f f e r e n c e . T h e a b s o l u t e n u m b e r s of rural p o o r h a v e m o u n t e d , a n d in 1988, it w a s e s t i m a t e d that 5 4 p e r c e n t of all rural f a m i l i e s w e r e i m p o v e r i s h e d ( B a l i s a c a n , 1 9 9 3 ) . M o r e o v e r , p o v e r t y i n c i d e n c e in t h e r u r a l P h i l i p p i n e s is a l m o s t as s e v e r e a m o n g s m a l l c u l t i v a t o r s as it is a m o n g the l a n d l e s s . U n l e s s b r o a d b a s e d a g r i c u l t u r a l g r o w t h , c o u p l e d w i t h an e x p a n s i o n of l a b o r - i n t e n s i v e m a n u f a c t u r i n g , o c c u r s , rural p o v e r t y will w o r s e n f o r p o p u l a t i o n g r o w t h rem a i n s e x t r e m e l y high ( o v e r 2 . 8 p e r c e n t a n n u a l l y ) . T h e f a i l u r e of t h e i n d u s t r i a l s e c t o r to g e n e r a t e e m p l o y m e n t a n d t h e w e a k l i n k a g e s f r o m a g r i c u l t u r e to i n d u s t r y h a v e r e d u c e d the p o s i t i v e e f f e c t s that g r o w t h in o n e s e c t o r can h a v e on t h e o t h e r . I n d e e d , t h e b e n e f i t s of a g r i c u l t u r a l g r o w t h h a v e b e e n c o n c e n t r a t e d a m o n g w e a l t h i e r f a r m e r s and l a n d o w n e r s , w h i l e real a g r i c u l t u r a l w a g e s h a v e d e c l i n e d . T h e c a p i t a l i n t e n s i v e n a t u r e of P h i l i p p i n e i n d u s t r i e s a l s o m e a n s that the d i v i d e n d s of limited industrial growth have largely been e n j o y e d by industrialists and, r e l a t i v e l y s p e a k i n g , l a b o r e r s in p r o t e c t e d i n d u s t r i e s . T h e p a t t e r n s of d o m e s t i c d e m a n d that h a v e b e e n g e n e r a t e d in t h e p r o c e s s h a v e not s t i m u l a t e d d e v e l o p m e n t of i n t e r n a t i o n a l l y c o m p e t i t i v e , l a b o r - i n t e n s i v e i n d u s t r i e s . A s e m p l o y m e n t has s t a g n a t e d , u n e m p l o y m e n t has g r o w n , a n d international labor m i g r a t i o n h a s b e c o m e an i n c r e a s i n g l y i m p o r t a n t f e a t u r e of t h e

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P h i l i p p i n e e c o n o m y . A very high p r o p o r t i o n of h o u s e h o l d s in the P h i l i p p i n e s report that r e m i t t a n c e s and other f o r m s of financial a s s i s t a n c e as real w a g e s have c o n t i n u e d to decline. It is clear that even d u r i n g p e r i o d s of a p p a r e n t e c o n o m i c g r o w t h , the P h i l i p p i n e s f o l l o w s a p a t h w a y d i v e r g e n t f r o m t h o s e t r a v e r s e d by J a p a n , Korea, a n d T a i w a n . Thailand. In lieu of r e d i s t r i b u t i v e land r e f o r m , T h a i p e a s a n t s w e r e all o w e d to o c c u p y a n d c l e a r f o r e s t s to d e v e l o p f a r m s in T h a i l a n d . T h i s p r o c e s s w a s , f o r a period, an e f f e c t i v e m e a n s of p r o v i d i n g agricultural land to t h o s e w h o o t h e r w i s e w o u l d have b e c o m e landless, a n d it h e l p e d to explain c o n s i s t e n t g r o w t h in a g g r e g a t e a g r i c u l t u r a l p r o d u c t i v i t y . T h e availability of extra land well into the 1970s p r e v e n t e d , in part, the e m e r g e n c e of l a r g e n u m b e r s of t e n a n t s a n d l a n d l e s s rural w o r k e r s a n d limited the f r a g m e n t a t i o n of e x i s t i n g f a r m s . C o n s e q u e n t l y , T h a i l a n d ' s a g r i c u l t u r e is n o w c h a r a c t e r i z e d by o w n e r - o p e r a t e d f a r m s of m o d e s t size. T h a i l a n d ' s i n d u s t r i a l s t r u c t u r e h a s s y s t e m a t i c a l l y s h i f t e d f r o m agric u l t u r e to m a n u f a c t u r i n g . H o w e v e r , it is important to u n d e r s t a n d the basic c h a r a c t e r i s t i c s of this c h a n g e . G r o w t h in m a n u f a c t u r i n g has been f i n a n c e d p r i n c i p a l l y by e x p r o p r i a t i o n of r e s o u r c e s g e n e r a t e d in a g r i c u l t u r e (principally t h r o u g h taxes on rice e x p o r t s ) a n d , m o r e recently, by a b o o m in fore i g n direct i n v e s t m e n t ( F D I ) , e s p e c i a l l y f r o m J a p a n . T h i s FDI has b e e n c o n c e n t r a t e d in B a n g k o k and its e n v i r o n s . R e g i o n a l i n e q u a l i t y b e t w e e n B a n g k o k and the rest of the country (particularly the p o o r N o r t h e a s t ) is exc e p t i o n a l l y high in T h a i l a n d . T h e N o r t h e a s t has the largest a g r i c u l t u r a l s h a r e in g r o s s regional product; it also has the lowest agricultural productivity. Peasant laborers f r o m the N o r t h e a s t m i g r a t e to the Central Plains to h a r v e s t rice and e n g a g e in c o n s t r u c t i o n and other trades in the dry season f o r there is little i r r i g a t i o n — h e n c e , o p p o r t u n i t i e s for o n - f a r m w o r k in the N o r t h e a s t at that time are limited. T h e i n c r e a s e in FDI has a c c e l e r a t e d the g r o w t h of m a n u f a c t u r e d exports, and m a n u f a c t u r i n g e m p l o y m e n t has likewise i n c r e a s e d . But to date, it d o e s not a p p e a r that this is e x c l u s i v e l y a l a b o r - i n t e n s i v e pattern of e x p o r t - o r i e n t e d g r o w t h . L e s s - s k i l l e d l a b o r is not b e i n g a b s o r b e d rapidly into the new e n t e r p r i s e s . Rather, b e t t e r - s k i l l e d and b e t t e r - e d u c a t e d labore r s are in d e m a n d . H o w e v e r , this t r e n d is not d e f i n i t i v e . T h e r e has a l s o b e e n a s i g n i f i c a n t g r o w t h in f e m a l e e m p l o y m e n t , e s p e c i a l l y in the textile industry w h e r e an e s t i m a t e d 8 5 p e r c e n t of the labor f o r c e is f e m a l e . All this b r i n g s i n c r e a s i n g c o n c e r n s that the r e c e n t g r o w t h b o o m will g e n e r a t e e x t r e m e d i s t r i b u t i o n a l i n e q u a l i t i e s , rather than o p e n a relatively e g a l i t a r i a n g r o w t h path as o c c u r r e d in East A s i a . T h e i n v e s t m e n t - l e d g r o w t h has b e e n c o n s t r a i n e d by s h o r t a g e s of a d e q u a t e l y s k i l l e d w o r k e r s a n d m i d - l e v e l t e c h n i c a l p e r s o n n e l . S e c o n d a r y s c h o o l e n r o l l m e n t ratios h a v e b e e n low in T h a i l a n d , and d r o p - o u t ratios are h i g h , p a r t i c u l a r l y in rural a r e a s . T h e p r o b l e m is m o s t s e r i o u s in the N o r t h e a s t . R e a l w a g e

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i n c r e a s e s in c a t e g o r i e s of s k i l l e d a n d t e c h n i c a l w o r k e r s r e f l e c t t h e s u p p l y s i t u a t i o n . In t h e f u t u r e , the g r o w t h of m o r e l a b o r - i n t e n s i v e a n d o u t w a r d l o o k i n g i n d u s t r i e s in r e g i o n s b e y o n d B a n g k o k a n d its i m m e d i a t e o u t s k i r t s — i n d u s t r i e s t h a t c a n link u p w i t h e x i s t i n g e x p o r t - o r i e n t e d i n d u s t r i e s — w i l l be a c r u c i a l e l e m e n t in d e t e r m i n i n g w h e t h e r T h a i l a n d w i l l a d v a n c e a l o n g a m o r e e q u i t a b l e g r o w t h p a t h . T h e a l t e r n a t i v e m a y be an e c o n o m y c h a r a c t e r i z e d by w i d e i n e q u a l i t y b e t w e e n r e g i o n s a n d b e t w e e n an u r b a n - b a s e d e l i t e of the s k i l l e d a n d h i g h l y e d u c a t e d a n d a r u r a l - b a s e d u n d e r c l a s s of u n s k i l l e d a n d l e s s - e d u c a t e d w o r k e r s , p r i n c i p a l l y f e m a l e . C o n s e q u e n t l y , d e s p i t e the rate of s t r u c t u r a l c h a n g e in T h a i l a n d ' s G D P , e m p l o y m e n t has r e m a i n e d c o n c e n t r a t e d in a g r i c u l t u r e . T h i s s e e m s not to h a v e r e s u l t e d in w i d e s p r e a d p o v e r t y m a i n l y b e c a u s e p o p u l a t i o n g r o w t h h a s fallen to less than 2 p e r c e n t per a n n u m a n d agricultural i n c o m e s h a v e c o n tinued to g r o w at nearly 4 p e r c e n t per a n n u m . O n l y a b o u t 10 p e r c e n t of the labor f o r c e w a s p r i m a r i l y e m p l o y e d in industry in 1987, and o v e r t w o - t h i r d s of the labor f o r c e w a s reported to be p r i m a r i l y e n g a g e d in a g r i c u l t u r e . Services c o n s t i t u t e an u n u s u a l l y low s h a r e of total e m p l o y m e n t (21 p e r c e n t in 1989), despite the fact that they a c c o u n t e d f o r a l m o s t half of G D P . T h e r e are p r o b l e m s w i t h t h e d a t a s h o w i n g c o n t i n u e d high a g r i c u l t u r a l e m p l o y m e n t s h a r e s . 3 D a t a on m a n u f a c t u r i n g e m p l o y m e n t as a p e r c e n t a g e of total are likely to b e m o r e a c c u r a t e f o r it is f a i r l y e a s y to e n u m e r a t e e m p l o y e e s in m a n u f a c t u r i n g e s t a b l i s h m e n t s . But the n u m b e r s e n g a g e d in inf o r m a l , largely s e r v i c e - o r i e n t e d a c t i v i t i e s m a y b e u n d e r s t a t e d . 4 H e n c e , t h e highly a g g r e g a t e d d a t a a v a i l a b l e d o not g i v e us a very a c c u r a t e picture of w h a t is r e a l l y h a p p e n i n g in r u r a l l a b o r m a r k e t s . T h e l a r g e a b s o l u t e inc r e a s e in a g r i c u l t u r a l e m p l o y m e n t i m p l i e d b y t h e f i g u r e s on l a b o r f o r c e s h a r e , g i v e n the c o n t i n u e d g r o w t h of t h e r u r a l l a b o r s u p p l y , s e e m s i m p l a u s i b l e . T h i s is an i m p o r t a n t p o i n t b e c a u s e t h e h i g h a g r i c u l t u r a l e m p l o y m e n t s h a r e c o e x i s t s with i n s t i t u t i o n a l c h a n g e s that s e e m to e c o n o m i z e on l a b o r in a g r i c u l t u r a l o p e r a t i o n s . 5 Of c o u r s e , i n c r e a s e d c r o p p i n g i n t e n sity a n d / o r e x p a n s i o n of the a r e a s o w n c o u l d s o m e w h a t o f f s e t the e f f e c t s of s h i f t i n g f r o m t r a n s p l a n t i n g t o b r o a d c a s t i n g s e e d , m e c h a n i z i n g l a n d p r e p a r a t i o n , h a r v e s t i n g and t h r e s h i n g , a n d e n f o r c i n g c o n t r a c t s that r e q u i r e harvesting labor to provide other c r o p cycle services without additional p a y . H o w e v e r , it is a l s o likely that h o u s e h o l d s w i t h l o w l e v e l s of a s s e t s like land are p u s h e d as m u c h as they a r e p u l l e d into n o n f a r m e m p l o y m e n t . C o n s e q u e n t l y , a l t h o u g h the d i r e c t i o n s of c h a n g e a p p e a r , o n the s u r f a c e , to m i m i c t h o s e s e e n in J a p a n , K o r e a , a n d T a i w a n , c l o s e r e x a m i n a t i o n s u g g e s t s the d y n a m i c s are q u i t e d i f f e r e n t .

Implications

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Studies

Debate

T h e d i s c u s s i o n of t h e East A s i a n " m o d e l " i l l u s t r a t e s s e v e r a l f u n d a m e n t a l i s s u e s in c o n c e p t u a l i z i n g the s i g n i f i c a n c e of e m p l o y m e n t d i f f e r e n t i a t i o n in

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r u r a l a r e a s . O n o n e side is t h e idea that all m a t e r i a l l y s i m i l a r e m p l o y m e n t is e c o n o m i c a l l y a n d t e c h n o l o g i c a l l y e q u i v a l e n t . B y m a t e r i a l l y s i m i l a r , w e r e f e r to t h e b r o a d o c c u p a t i o n a l c h a r a c t e r i s t i c s , s u c h as a g r i c u l t u r e , s e r v i c e , m a n u f a c t u r i n g , a n d t r a n s p o r t , t h a t r e l a t e to t h e s e c t o r in w h i c h the w o r k takes place. This approach essentially considers employment differentiat i o n f r o m a m a c r o p e r s p e c t i v e . T h e c a t e g o r i e s it u s e s r e f l e c t c o n c e r n s a b o u t d i f f e r e n t i a t i o n in t h e c o m p o s i t i o n of e c o n o m i c a c t i v i t i e s in the a g g r e g a t e . F r o m that m a c r o b a s i s , it m a i n t a i n s an i n t e r e s t in e v a l u a t i n g t e c h nical a n d e c o n o m i c e f f i c i e n c y b y f o c u s i n g on a g g r e g a t e l a b o r p r o d u c t i v i t y i n d i c a t o r s , c a p i t a l - t o - l a b o r r a t i o s in s e c t o r s a n d i n d u s t r i e s , a n d a s s e s s m e n t s of a p p r o p r i a t e w a g e r a t e s . T h i s s o m e t i m e s p r o m p t s i n t e r e s t at t h e m i c r o l e v e l in t h e c h a r a c t e r i s t i c s of e f f i c i e n t w o r k s p e c i a l i z a t i o n a n d j o b s t a n d a r d i z a t i o n in s p e c i f i c i n d u s t r i e s . T h i s a p p r o a c h has b e e n v a l u a b l e in e x a m i n i n g the c h a n g i n g c o m p o s i t i o n of n a t i o n a l e c o n o m i c a c t i v i t y a n d its r e l a t i o n s h i p s to t h e c h a n g i n g c o m p o s i t i o n of the labor f o r c e , the c h a n g i n g d i s t r i b u t i o n of labor p r o d u c tivity, a n d the b r o a d i m p a c t s of m a c r o e c o n o m i c p o l i c i e s o n i n v e s t m e n t and s a v i n g s . T h e a n a l y s e s g e n e r a t e d f r o m this p e r s p e c t i v e h a v e had i m p o r t a n t i n f l u e n c e s on p o l i c y d e b a t e s a b o u t rural e m p l o y m e n t p r o m o t i o n . T h e a p p r o a c h has b e e n n a i v e , h o w e v e r , in u s i n g the n a r r o w p l a t f o r m of t e c h n o e c o n o m i c e q u i v a l e n c e as a b a s i s f o r c l a i m i n g to u n d e r s t a n d the b r o a d e r social a n d political d i m e n s i o n s of c h a n g i n g w o r k r e l a t i o n s h i p s a n d w h a t they m e a n f o r a n d r e v e a l a b o u t the e v o l u t i o n of e c o n o m i c o r g a n i z a t i o n in rural a r e a s . I n d e e d , m o s t o f t e n , the a s s u m p t i o n is that e c o n o m i c o r g a n i z a t i o n in rural a r e a s c a n be d e s c r i b e d e i t h e r in t e r m s that a r e c o n s i s t e n t w i t h t h o s e u s e d f o r a g g r e g a t e e c o n o m i c d e s c r i p t i o n s or a s h i s t o r i c a l a n o m a l i e s that will e v e n t u a l l y be t r a n s f o r m e d into p a t t e r n s that a r e c o n s i s t e n t . O n a n o t h e r side is a c o n c e p t i o n of rural w o r k as a v e r y c o m p l e x a n d p r o f o u n d l y c o n t e x t u a l s o c i a l p h e n o m e n o n . T h i s t e n d s to p r o m o t e a d i s t i n c t i v e l y m i c r o e m p h a s i s that, t h o u g h it d o e s n o t d e n y the p o s s i b i l i t i e s o r u t i l i t i e s of c o m p a r a t i v e a n a l y s e s , is not d r i v e n by a n e e d to m a k e a g g r e g a t e g e n e r a l i z a t i o n s . T h i s a p p r o a c h is s e n s i t i v e to b r o a d e r p r o c e s s e s of social a d a p t a t i o n and l e a r n i n g that u n d e r l i e ( a n d c a n b o t h f a c i l i t a t e a n d c o n s t r a i n ) s p e c i f i c p a t t e r n s of r u r a l e c o n o m i c d e v e l o p m e n t . H o w e v e r , it f o c u s e s o n t h e f o r m s a n d c o n s e q u e n c e s of t h o s e p r o c e s s e s in i n d i v i d u a l s e t t i n g s m o r e to i l l u m i n a t e the d y n a m i c s o p e r a t i n g in t h o s e s e t t i n g s than to e s t a b l i s h the u n i v e r s a l i t y of t h e p r o c e s s e s . T h i s a p p r o a c h has b e e n v a l u a b l e in e x p l o r i n g t h e d y n a m i c s of e m p l o y m e n t d i v e r s i f i c a t i o n p r o c e s s e s in s p e c i f i c s e t t i n g s a n d a s s e s s i n g h o w t h e s e p r o c e s s e s relate to c h a r a c t e r i s t i c s of a g r a r i a n o r g a n i z a t i o n a n d l a n d use; p o p u l a t i o n g r o w t h a n d d e m o g r a p h i c c h a n g e ; p a t t e r n s of c o m m u n i t y o r g a n i z a t i o n a n d capital a c c u m u l a t i o n ; a n d , in s o m e c a s e s , the i m p a c t s of s t a t e a c t i v i t i e s , such as l a n d use r e s t r i c t i o n s , w a g e p o l i c i e s , a n d i n f r a s t r u c ture i n v e s t m e n t s . H o w e v e r , this p e r s p e c t i v e h a s b e e n n a i v e in d i s c o u n t i n g

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t h e s i g n i f i c a n c e of w h a t a m o u n t to e c o n o m i c a n d t e c h n o l o g i c a l " i m p e r a t i v e s " in rural e m p l o y m e n t d i v e r s i f i c a t i o n a n d in f r e q u e n t l y a s s u m i n g that multidimensional rural work roles must s o m e h o w be internally consistent. T h e l a t t e r p r o b l e m c a n lead to an u n d e r e s t i m a t i o n of t h e d i s c o n t i n u i t i e s that d i v e r s i f i c a t i o n is i n t r o d u c i n g . T h i s is i l l u s t r a t e d by c o m m u n i t y d e v e l o p m e n t a n d a p p r o p r i a t e t e c h n o l o g y s t r a t e g i e s as p i l l a r s of r u r a l e m p l o y m e n t p o l i c y . E m p l o y m e n t that is q u i t e c o m p a t i b l e w i t h e x i s t i n g w o r k r o l e s a n d l a b o r skills c a n b e g e n e r a t e d . L e f t o u t of f o c u s , h o w e v e r , is the e n o r m o u s l y i m p o r t a n t i s s u e of w h e t h e r a n d at w h a t rate b r o a d e r t e c h n o l o g i c a l a n d e c o n o m i c c h a n g e s a r e m a k i n g o b s o l e t e t h e n e x u s b e t w e e n the " t r a d i t i o n a l " rural c o m m u n i t y a n d " t r a d i t i o n a l " rural w o r k r o l e s a n d labor skills. A n e x a m p l e of t h e d i f f i c u l t i e s i n h e r e n t in b a l a n c i n g t h e s e a p p r o a c h e s is p r o v i d e d by t h e p r o p o s e d East A s i a n m o d e l . I n c r e a s i n g r e c o g n i t i o n of d i v e r s i f i c a t i o n in rural A s i a has d r a w n a t t e n t i o n to i n t e r p r e t a t i o n s of e c o n o m i c d e v e l o p m e n t e x p e r i e n c e s in t h e r e g i o n ' s m o s t e c o n o m i c a l l y a d v a n c e d c o u n t r i e s — J a p a n , Korea, and T a i w a n . Based on these interpretat i o n s , s o m e c o n c l u d e that t h e m o s t i m p o r t a n t t r a n s i t i o n o c c u r r i n g in t h e s t r u c t u r e of A s i a ' s rural e m p l o y m e n t is a s h i f t f r o m an a g r a r i a n to a n o n a g r a r i a n b a s e . T h e a n a l y s i s of this s h i f t in East A s i a has lent s u p p o r t to the p r o p o s i t i o n ( a n d e x p e c t a t i o n ) that a g r i c u l t u r a l d e v e l o p m e n t , by i n c r e a s i n g f a r m i n c o m e s , c r e a t e s f a v o r a b l e c o n d i t i o n s f o r t h e e x p a n s i o n of p r o d u c t i v e n o n a g r i c u l t u r a l r u r a l e m p l o y m e n t a n d t h e r e d u c t i o n of r u r a l i n c o m e ine q u a l i t i e s ( H o , 1986; O s h i m a , 1 9 8 3 ) . T h e q u e s t i o n , h o w e v e r , is w h e t h e r t h e s e p r o p o s i t i o n s a d e q u a t e l y acc o u n t f o r w h a t has h a p p e n e d in J a p a n , K o r e a , a n d T a i w a n . A n d w h e t h e r or not t h e y d o ( B r a d f o r d , 1 9 8 6 ) , s h o u l d the p r o p o s i t i o n s ( a n d t h e e x p e c t a t i o n s t h e y g e n e r a t e ) be a p p l i e d to o t h e r p a r t s of A s i a ? For e x a m p l e , a des c r i p t i o n of e c o n o m i c d e v e l o p m e n t in C h i n a ' s s o u t h e r n J i a n g s u P r o v i n c e , n o r t h e r n Z h e j i a n g P r o v i n c e , a n d the P e a r l R i v e r D e l t a of G u a n g d o n g Province concludes: A l l three r e g i o n s share particular a d v a n t a g e s w h i c h c a n n o t be e a s i l y r e p l i c a t e d e l s e w h e r e . T h e s e i n c l u d e w e l l - d e v e l o p e d transport s y s t e m s and a c c e s s to urban or external markets; h i g h e r starting b a s e i n c o m e s f r o m traditional agriculture to f i n a n c e the first s t a g e o f industrial d e v e l o p m e n t , and a relatively skilled and e d u c a t e d rural w o r k f o r c e , i n c l u d i n g large n u m b e r s o f rural-origin w o r k e r s e m p l o y e d in nearby c i t i e s , w h i c h leads to t e c h n o l o g y transfer w h e n w o r k e r s return to their v i l l a g e s ( D e l f s ,

1987: 79). T h e s e c h a r a c t e r i s t i c s a r e not c o m m o n to rural Asia, nor are they necessarily s u s t a i n a b l e e v e n w i t h i n the f a s t - g r o w i n g r e g i o n s of C h i n a ( H a w k i n s a n d Koppel, 1991), a point d e v e l o p e d by Y o k - S h i u Lee in his c h a p t e r in this v o l u m e . T h r o u g h o u t m o s t of rural A s i a , d e v e l o p m e n t p o l i c y r e g i m e s f r e q u e n t l y d i s c r i m i n a t e a g a i n s t a g r i c u l t u r e . H i g h rural p o p u l a t i o n p r e s s u r e s on

Employment Diversification in Rural Asia

a g r i c u l t u r a l r e s o u r c e s and m a j o r p a t t e r n s of a g r a r i a n o r g a n i z a t i o n

297

and

c h a n g e (such as the i n c r e a s i n g c o n c e n t r a t i o n of land o w n e r s h i p a n d the volatility of m o n o c u l t u r a l c o m m o d i t y p r o d u c t i o n s y s t e m s ) are f r e q u e n t l y a s s o c i a t e d with the p e r s e v e r a n c e of rural p o v e r t y a n d inequality. T h e r e a r e i n d i c a t i o n s t h a t a s m u c h as h a l f t h e r u r a l l a b o r f o r c e a l r e a d y s e e k s s o m e i n c o m e f r o m o f f - f a r m s o u r c e s ( T a b l e 1 . 5 ) , a n d t h e r e is e v i d e n c e of d e c l i n i n g g r o w t h in p e r w o r k e r i n c o m e in a g r i c u l t u r e ( T a b l e 1 . 6 ) . All t h e s e f a c t o r s a r e i n t e r a c t i n g in d y n a m i c s t h a t f r e q u e n t l y a p p e a r to b e q u i t e d i f f e r e n t f r o m t h o s e d e s c r i b e d in E a s t A s i a ' s e x p e r i e n c e . D i v e r s i f i c a t i o n o f e m p l o y m e n t a n d i n c o m e s o u r c e s b y r u r a l h o u s e h o l d s is b e i n g d r i v e n , in m a n y c a s e s , b y declining

abilities to m a i n t a i n s t a n d a r d s of living b a s e d only

on a g r a r i a n a c t i v i t i e s — i n t e r m s of both levels of i n c o m e and f o r m s of consumption.

Conclusion W h a t is t h e m e a n i n g of e m p l o y m e n t d i f f e r e n t i a t i o n in r u r a l A s i a ? W h e n d o e s it r e p r e s e n t a t r a j e c t o r y o f d e v e l o p m e n t , a n d w h e n d o e s it d e s c r i b e a t r a j e c t o r y of d e t e r i o r a t i o n ? T h e a n s w e r is n o t s i m p l e . T h o u g h t h e r e a r e i m portant continuities with the past that can m a k e a n s w e r i n g the q u e s t i o n a f o r m of e x t r a p o l a t i o n , t h e r e a r e a l s o v e r y s i g n i f i c a n t d i s c o n t i n u i t i e s t h a t c a n m a k e e x t r a p o l a t i o n r i s k y . A m a j o r c h a l l e n g e is u n d e r s t a n d i n g w h e n w e a r e l o o k i n g at c o n t i n u i t i e s a n d w h e n w e a r e f a c e d b y i m p o r t a n t d i s c o n t i n u i t i e s . S h e l l e y F e l d m a n p u t s it w e l l in a n o t e to h e r c h a p t e r in t h i s v o l u m e ( p . 1 2 7 , n o t e 11). Research on the nonfarm sector has often g r o w n out of the need to diversify income earning a m o n g those dispossessed of landed property. Although forms of income diversification may be stimulated by the need to replace agricultural production with nonfarm work, processes to alleviate poverty, diversify income, or devise i n c o m e - e a r n i n g strategies are not s y n o n y m o u s because each may generate a different pattern of labor market participation and restructure the economy in diverse ways. Moreover, nonfarm employment has an independent historical trajectory that should not be equated with the w a y s in which n o n f a r m e m p l o y m e n t interfaces with changes in agricultural production. T h e r e is little q u e s t i o n t h a t a s h i f t is o c c u r r i n g in t h e c o m p o s i t i o n o f e m p l o y m e n t in r u r a l a r e a s of A s i a . In m a n y c a s e s , t h i s s h i f t is n o t a r e c e n t d e v e l o p m e n t , but the s c o p e a n d c o m p o s i t i o n of d i v e r s i f i c a t i o n p r o c e s s e s o f t e n h a v e c o n t e m p o r a r y implications that s u g g e s t the processes are quali t a t i v e l y d i f f e r e n t than t h o s e t h a t m a y h a v e e x i s t e d p r e v i o u s l y . A t t h e l e a s t , w h a t t h e s e d i f f e r e n t i a t i o n p r o c e s s e s s u g g e s t is t h a t a n i n c r e a s i n g p r o p o r tion of rural labor relations are not c o n n e c t e d directly or e x c l u s i v e l y with

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t r a d i t i o n a l a g r a r i a n p r o c e s s e s ; r a t h e r , they a r e a s s o c i a t e d w i t h m o r e c o m p l e x s o c i o e c o n o m i c r e l a t i o n s h i p s in w h i c h a g r a r i a n p r o c e s s e s m a y be only o n e p a r t . O n e v e r y i m p o r t a n t i m p l i c a t i o n is that e m p l o y m e n t g e n e r a t i o n , e n t e r p r i s e f o r m a t i o n a n d e x p a n s i o n , l a b o r skill a c q u i s i t i o n , a n d o c c u p a tional c h o i c e a n d m o b i l i t y a r e o c c u r r i n g in a s o c i o e c o n o m i c c o n t e x t that is in s i g n i f i c a n t t r a n s i t i o n . I m p o r t a n t d i m e n s i o n s of r u r a l l i f e a r e b e i n g c o n t e s t e d — a n d not s i m p l y b y e x t e r n a l f o r c e s . T h e r e s u l t is not s i m p l y d i v e r sity of f o r m s — w h i c h m o s t a n a l y s t s a p p e a r p r e p a r e d t o a c c e p t , albeit o f t e n as e n t r i e s in c l a s s i f i c a t i o n s that d e n y t h e i m p a c t of d i v e r s i t y — b u t a l s o a s i g n i f i c a n t d i v e r s i f y i n g of m e a n i n g s . T h i s p r e s e n t s a c h a l l e n g e that c o n v e n t i o n a l d e v e l o p m e n t s t u d i e s on rural e m p l o y m e n t i s s u e s in A s i a a r e not c o m p l e t e l y p r e p a r e d to f a c e . A g o o d p o r t i o n of t h e e x i s t i n g t h e o r e t i c a l d e b a t e s o n r u r a l l a b o r p r o c e s s e s c o n t i n u e to b e cast in n e o - M a r x i s t or liberal e c o n o m i c m o l d s — m o l d s that f u n d a m e n t a l l y insist on t h e s t a n d a r d i z a t i o n of p r o c e s s e s , s t r u c tures, and significances associated with work diversification generally and w i t h t h e rise of rural n o n a g r i c u l t u r a l w a g e e m p l o y m e n t s p e c i f i c a l l y . H o w e v e r , a s s e e n in t h e s e v e n c o u n t r y s t u d i e s a n d the d i s c u s s i o n of t h e limits of t h e E a s t A s i a n " m o d e l , " the c o m p l e x i t y a n d v a r i a b i l i t y of t h e c h a n g i n g w o r k s i t u a t i o n in r u r a l A s i a s t r o n g l y s u g g e s t that e x i s t i n g t h e o r e t i c a l deb a t e s a c r o s s t h e r u r a l s o c i a l s c i e n c e s a b o u t t h e s e p r o c e s s e s s h o u l d b e reo r i e n t e d . W h a t is s t r o n g l y n e e d e d is a s i g n i f i c a n t d o s e of g r o u n d e d theory d e v e l o p m e n t that r e s p o n d s to t h e s p e c i f i c c o n t e x t s of rural A s i a , c e r t a i n l y m o r e t h a n a c o n t i n u e d d e f e n s e of w h a t a m o u n t s to h i g h l y s t y l i z e d f o r m s of theory confirmation. In t h e c o u r s e of d e v e l o p i n g s u c h a g r o u n d e d t h e o r y , t h r e e p o i n t s in p a r t i c u l a r , a r e l i k e l y to a t t r a c t s p e c i a l a t t e n t i o n . T h e f i r s t p o i n t i n v o l v e s confronting several compelling questions. What, under various circums t a n c e s , is the s o c i o e c o n o m i c a n d p o l i t i c a l s i g n i f i c a n c e of n o n f a r m w o r k in rural a r e a s ? W h e n is it best u n d e r s t o o d as a b y - p r o d u c t of a g r a r i a n d i f ferentiation? And when are other (although possibly related) processes m o r e d i r e c t l y p r e s e n t — p r o c e s s e s s u c h as a g r a r i a n i n c o r p o r a t i o n into a w i d e r p o l i t i c a l e c o n o m y , a t t e n d a n t p r o c e s s e s of c l a s s f o r m a t i o n a n d g e n d e r s t r a t i f i c a t i o n , a n d t h e p o s s i b l e e m e r g e n c e of f o r m s of e c o n o m i c a c t i v ity that lie b e t w e e n the c l a s s i c u r b a n - r u r a l d i c h o t o m y . T h e s e c o n d p o i n t i n v o l v e s r e c o g n i z i n g that t h e p r o c e s s e s a n d i n c i d e n c e of n o n f a r m w o r k in rural a r e a s a r e likely to b e m a n i f e s t e d in a v a r i ety of f o r m s and institutional a r r a n g e m e n t s . W h a t t h e s e f o r m s a n d a r r a n g e m e n t s a r e a n d w h a t their s o c i o e c o n o m i c a n d political s i g n i f i c a n c e are will be key issues. R e c o g n i z i n g a n d a s s e s s i n g t h e s e i s s u e s will m o s t likely req u i r e s e r i o u s l y c h a l l e n g i n g s o m e of t h e c e n t r a l m e t a p h o r s that h a v e b e e n u s e d to c o n c e p t u a l i z e rural l a b o r p r o c e s s e s . O n e e x a m p l e is t h e ( ^ e m e r g e n c e of a n e o - W e b e r i a n t r a d i t i o n in p o l i t i c a l s o c i o l o g y . W r i t e r s in this t r a d i t i o n a r e m a k i n g p r o g r e s s in o v e r c o m i n g p r o b l e m s of r e i f i c a t i o n ,

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f u n c t i o n a l i s m , a n d t e l e o l o g y that h a v e p l a g u e d b o t h M a r x i s t and liberal e c o n o m i c analyses (e.g., Bourdieu, 1977; Giddens,

1981; Scott,

1985;

W i l l i s , 1 9 7 7 ) . From t h e s e roots, there are p o s s i b i l i t i e s for m o r e b a s i c para d i g m a t i c c h a n g e . It w i l l be e s p e c i a l l y important to p r o b l e m a t i z e m o r p h o l o g i c a l c o n t i n u i t i e s in rural labor p r o c e s s e s , l o o k i n g b e n e a t h t h e s e for c o n tent

and

contextual

sources

of

discontinuities

in

the

meanings

of

apparently s i m i l a r institutional a r r a n g e m e n t s . T h e third point e n t a i l s c o n f r o n t i n g the c o m p l e x i s s u e s o f articulation a m o n g particular p r o c e s s e s a s s o c i a t e d w i t h n o n f a r m w o r k in s p e c i f i c rural areas and w i d e r p r o c e s s e s o f e c o n o m i c incorporation, s o c i a l m o b i l i z a t i o n , state d e v e l o p m e n t , and the ( d e ) p o l i t i c i z a t i o n o f structural c h a n g e . A t t e n tion w i l l n e e d to m o v e b e y o n d a p r e o c c u p a t i o n w i t h m a c r o - m i c r o a n a l y s e s as a s s e s s m e n t s o f the i m p a c t s of o n e l e v e l on the other to an e x a m i n a t i o n o f the s o c i o p o l i t i c a l p r o c e s s e s that c o n s t i t u t e the l i n k a g e s b e t w e e n m a c r o and m i c r o p r o c e s s e s . T h i s i m p l i e s , in turn, a rejection o f a priori a s s u m p tions about the unidirectionality o f i n f l u e n c e in t h e s e r e l a t i o n s h i p s .

Notes 1. T h e r e is, for instance, an ongoing debate in Japanese academic circles on w h e t h e r J a p a n ' s experience can provide a model for the rest of Asia. See, e.g., O h k a w a (1980); and O h k a w a and Johnston (1969); and O h k a w a , Johnston, and Kaneda (1969). There is also an abundant literature on the East Asian development experience, including Lau (1986) and Vogel (1991). 2. Neutral policy in this context means that the terms of trade are not deliberately turned against agriculture. T h i s also implies that e x p e n d i t u r e , credit, exchange rate, and other policies should be framed so they are not severely biased against agriculture. 3. It is well established that services tend to be rather labor intensive, on average. Hence, if one adjusts the Thai data by making the assumption that Thai services are at the average labor-output ratio of the rest of the Southeast Asian services sectors, services would account for about 40 percent of the labor force in Thailand; this would cause a downward adjustment in agriculture's share of employment to 47 percent. 4. This may be especially true of migrant seasonal workers seeking temporary jobs in urban areas. 5. In Thailand, farmers have begun to use small tractors and other labor-substituting farm machinery on a widespread basis.

References Balisacan, A. 1993. "Agricultural Growth, Landlessness, O f f - F a r m E m p l o y m e n t , and Rural Poverty in the Philippines," Economic Development and Cultural Change, Vol. 41 (April), pp. 5 3 3 - 5 6 2 . Bautista, R . M . 1986. Domestic Price Distortions and Agricultural Incomes in Developing Countries (Washington, D.C.: International Food Policy Research Institute).

300

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Bourdieu, Pierre. 1977. Outline of a Theory of Practice (Cambridge: Cambridge University Press). Bradford, Colin 1., Jr. 1986. "East Asian 'Models': Myths and Lessons," in John P. Lewis and Valeriana Kallab, eds., Development Strategies Reconsidered (Washington, D.C.: Overseas Development Council), pp. 115-128. Delfs, Roben. 1987. "Lesson from Sunan," Far Eastern Economic Review, Vol. 137 (June 4), pp. 78-80. Fujita, N., and W.E. James. 1990. "Export-Oriented Growth of Output and Employment in Taiwan and Korea, 1973/74-1983/84," Weltwirschaftliches Archives, Vol. 126 (Winter), pp. 737-753. Giddens, Anthony. 1981. A Contemporary Critique of Historical Materialism (Berkeley: University of California Press). Glassburner, B. 1985. "Macroeconomics and the Agricultural Sector," Bulletin of Indonesian Economic Studies, Vol. 21 (August), pp. 51-73. Hawkins, John, and Bruce Koppel. 1991. "Special Economic Zones and Education in China: Bold Reform or Timid Experiment?" in Irving Epstein, ed., Chinese Education: Problems, Policies, and Prospects (New York: Garland Publishing), pp. 172-195. Hayami, Yujiro. 1964. "Demand for Fertilizer in the Course of Japanese Agricultural Development," Journal of Farm Economics, Vol. 46 (November), pp. 776-779. . 1967. "Innovations in the Fertilizer Industry and Agricultural Development: The Japanese Experience," Journal of Farm Economics, Vol. 49 (May), pp. 403-412. Hayami, Yujiro, and Vernon W. Ruttan. 1970. "Factor Prices and Technical Change in Agricultural Development: The United States and Japan, 18801960," The Journal of Political Economy, Vol. 78 (September-October), pp. 1115-1141. . 1985. Agricultural Development: An International Perspective, 2d ed. (Baltimore, Md: Johns Hopkins University Press). Ho, Samuel P.S. 1979. "Decentralized Industrialization and Rural Development: Evidence from Taiwan," Economic Development and Cultural Change, Vol. 32 (October), pp. 77-96. . 1986. The Asian Experience in Rural Nonagricultural Development and Its Relevance for China (Washington, D.C.: World Bank). Hsieh, Sen-Chung, and Teng-Hui Lee. 1966. Agricultural Development and Its Contribution to Economic Growth in Taiwan (Taipei: Chinese-American Joint Commission on Rural Reconstruction). Ito, T. 1992. The Japanese Economy (Cambridge, Mass.: MIT Press). Economic James, William E., S. Naya, and G.M. Meier. 1989. Asian Development: Successes and Policy Lessons (Madison: University of Wisconsin Press). Jeffrey, Patricia. 1982. Frogs in a Well: Indian Women in Purdah (London: Zed Press). Johnston, B., and P. Kilby. 1975. Agriculture and Structural Transformation (London: Oxford University Press). Johnston, B., and J. Mellor. 1961. "The Role of Agriculture in Economic Development," American Economic Review, Vol. 51 (September), pp. 566-593. Koppel, Bruce. 1987. "Agrarian Problems and Agrarian Reform: Opportunity or Irony?" in Carl Lande, ed., Rebuilding a Nation: Philippine Challenges and American Policy (Washington, D.C.: Washington Institute Press), pp. 157-187. . 1992. "Between Ballot and Balut: Emerging Issues in Philippine Labor Markets and Industrial Labor Relations," in Chung H. Lee and Park Fun Koo,

Employment Diversification in Rural Asia

301

eds., Emerging Labor Issues in Developing Asia (Seoul: Korea Development Institute), pp. 98-143. . 1993. "Land Policy Problems in East Asia: Understanding the Past and Moving Towards New Choices," in Bruce Koppel and Dai Young Kim, eds., Land Policy Problems in East Asia: Toward New Choices (Seoul: Korea Research Institute for Human Settlements), pp. 3 - 4 7 . Kuo, S. 1981. The Taiwan Success Story (Boulder, Colo.: Westview Press). Lau, L.J., ed. 1991. Models of Development (San Francisco, Calif: Institute for Contemporary Studies Press). Lee, Teng-Hui. 1971. Intersectoral Capital Flows in the Economic Development of Taiwan (Ithaca, N.Y.: Cornell University Press). Luong, Hy V. 1992. Revolution in the Village: Tradition and Transformation in North Vietnam, 1925-1988 (Honolulu: University of Hawaii Press). Mellor, J. 1976. The New Economics of Growth: A Strategy for India and the Third World (Ithaca, N.Y.: Cornell University Press). Myers, R.H. 1991. "The Economic Development of the Republic of China," in L.J. Lau, ed., Models of Development (San Francisco, Calif.: Institute for Contemporary Studies Press), pp. 13-64. Myint, H. 1975. "Agriculture and Economic Development in the Open Economy," in L. Reynolds, ed., Agriculture in Development Theory (New Haven, Conn.: Yale University Press), pp. 327-354. Ohkawa, Kazashi. 1980. Dualistic Development and Phases: Possible Relevance of the Japanese Experience to Contemporary Less Developed Countries (Luxemburg, Austria: International Institute for Applied Systems Analysis). Ohkawa, Kazashi, and Bruce F. Johnston. 1969. "The Transferability of the Japanese Pattern of Modernizing Traditional Agriculture," in E. Thorbecke, ed., The Role of Agriculture in Economic Development (New York: National Bureau for Economic Research, Columbia University Press). Ohkawa, K., and H. Rosovsky. 1973. Japanese Economic Growth: Trend Acceleration in the Twentieth Century (Stanford, Calif.: Stanford University Press). Ohkawa, Kazashi, Bruce F. Johnston, and Hiromitsu Kaneda, eds. \969. Agriculture and Economic Growth: Japan's Experience (Tokyo: University of Tokyo Press). Oommen, T.K. 1984. Social Transformation in Rural India: Mobilization and State Intervention (New Delhi: Vikas Publishing House). Oshima, Harry T. 1983. The Transition to an Industrial Economy in Monsoon Asia, Asian Development Bank Staff Paper No. 20 (Manila: Asian Development Bank). Power, J.H., and G. Sicat. 1971. The Philippines: Industrialization and Trade Policies (New York: Oxford University Press). Ranis, G., J. Fei, and S. Kuo. 1979. Growth with Equality: The Case of Taiwan (New York: Oxford University Press). Scott, James. 1985. Weapons of the Weak: Everyday Forms of Peasant Resistance (New Haven, Conn.: Yale University Press). Vogel, E. 1991. The Four Little Dragons: The Spread of Industrialization in East Asia (Cambridge, Mass.: Harvard University Press). Vyas, V.S., and W.E. James. 1988. "Agricultural Development in Asia: Performance, Issues, and Policy Options," in S. Ichimura, ed., Challenge of Asian Developing Countries (Hong Kong: Nordica Press). Willis, Paul. 1977. Learning to Labour (Hampshire, United Kingdom: Gower Publishing).

Acronyms ASEAN

A s s o c i a t i o n of S o u t h e a s t A s i a n N a t i o n s

BRDB

Bangladesh Rural D e v e l o p m e n t Board

BSCIC

Bangladesh Small and Cottage Industries Corporation

CLT

C e r t i f i c a t e of L a n d T r a n s f e r

EEC

European Economic Community

EP

Emancipation Patent

FDI

f o r e i g n direct i n v e s t m e n t

FIES

Family Income and Expenditure Surveys

GBP

Grameen Bank Project

GDP

gross domestic product

GNP

gross national product

HYV

high-yielding varieties

I FAD

International Fund for Agricultural D e v e l o p m e n t

ILO

International Labor Organization

IRDP

Integrated Rural D e v e l o p m e n t Program

JKKK

Jawatan Kuasa K e m a j u a n K a m p o n g

LDC

less-developed country

MADA

Muda Agricultural Development Authority

303

304

Acronyms

NEDA

National Economic and Development Authority

NEP

New Economic Policy

NGO

nongovernmental organization

NIEs

newly industrialized economies

NIP

New Industrialization Policy

NORAD

N o r w e g i a n D e v e l o p m e n t A s s i s t a n c e , M i n i s t r y of Development Cooperation

PAS

Partai Islam

TDRI

T h a i l a n d D e v e l o p m e n t Research Institute

UMNO

United Malay National Organization

USAID

U.S. Agency for International Development

The Contributors E d n a A n g e l e s - R e y e s was a fellow at the Philippine Institute of Development Studies, where she focused on the analysis of e c o n o m i c development issues in the Philippines. Her publications included " T h e Structure of Rural Household Income and Its Implications on Rural Poverty in Bicol, Philippines," which appeared in th cJournal of Philippine Development (1987). T a d j u d d i n N. Effendi is a professor of e c o n o m i c s at G a d j a h Mada University in Jogyakarta, Indonesia, where he specializes in issues of population and economic development. Shelley Feldman is an associate professor in the Department of Rural Sociology and the director of the Program on Gender and Global Change at Cornell University. She has published widely on rural development issues in B a n g l a d e s h . Her recent w o r k s include Unequal Burden: Economic Crises, Persistent Poverty, and Women's Work, which she coedited in 1992, and "Contradictions of Gender Inequality: Urban Class Formation in C o n t e m p o r a r y B a n g l a d e s h , " in Gender and Political Economy: Explorations of South Asian Systems, Alice Clark, editor (1993). Gillian Hart is an associate professor in the Department of City and Regional Planning at the University of California at Berkeley. Her publications include Power, Labor and Livelihood (1986) and Agrarian Transformations: Local Processes and the State in Southeast Asia, which she coedited in 1989. John H a w k i n s is dean for international studies and overseas programs and professor of comparative education at the University of California at Los Angeles. He has published many works on education and human resource development, with a focus on China. W i l l i a m J a m e s is a senior fellow in the P r o g r a m on International Economics and Politics at the East-West Center in Honolulu. A m o n g his num e r o u s publications on e c o n o m i c d e v e l o p m e n t issues a f f e c t i n g the Asia Pacific region are Economic Development: Economic Successes and Policy Lessons ( 1 9 8 9 ) and Foundations of India's Political Economy: Towards an Agenda for the 1990s (1992). 305

306

The Contributors

Bruce Koppel is vice-president for research and education at the East-West Center in Honolulu. He has published extensively on Asian development issues. His work has appeared in journals such as Economic Development and Cultural Change; Development and Change; and World Development. His most recent books are Induced Institutional Innovation and International Agricultural Development: A Reassessment (1994) and Land Policy Problems in East Asia: Toward New Choices (1993). Yok-shiu F. Lee is a fellow with the Program on Environment at the EastWest Center in Honolulu. His research and publications emphasize issues of regional and urban development, especially in China and Southeast Asia. Chris Manning is a professor of economics at Australian National University, Canberra. Focusing on issues of human resource development, especially in Indonesia, his publications have appeared in journals such as Population and Development Review and the Bulletin of Indonesian Economic Studies. Nipon Poapongsakorn is a professor of economics at T h a m m a s a t University in Bangkok, Thailand. He has published widely on Thai economic development issues in articles and monographs appearing in Thailand and elsewhere in Southeast Asia. Miriam Sharma is a professor of anthropology at the University of Hawaii, Manoa. Her works on Indian agrarian development issues have been published in numerous journals, including the Economic and Political Weekly and the Journal of Peasant Studies. Urmila Vanjani is an instructor in the sociology of development at the Rajasthan Institute of Public Administration in India, Jaipur.

Index A c c u m u l a t i o n strategy, 216, 236, 239 Agency problems with, 2 6 - 2 7 structure and, 279 A g r a r i a n d i f f e r e n t i a t i o n , 6, 1 8 - 1 9 , 2 9 , 102, 1 2 7 n 4 , 2 7 8 , 2 8 1 - 2 8 2 , 2 9 8 n o n f a r m e m p l o y m e n t a n d , 38, 39, 2 7 5 r e s p o n s e s to, 107 theoretical significance of, 275 A g r a r i a n o r g a n i z a t i o n , 133 c o m p o s i t i o n and d y n a m i c s o f , 2 8 0 Agrarian reform, 93 i m p a c t s o f , 143 p o v e r t y a n d , 142 Agrarian transformation, 1 p e r s p e c t i v e s o n , 102 significance of, 2 8 5 - 2 9 7 A g r i c u l t u r a l d i v e r s i f i c a t i o n , 3 7 , 171, 222, 226, 230 labor absorption and, 241 n o n f a r m e m p l o y m e n t a n d , 241 s t i m u l a t i n g , 190 Agricultural economy, 22 n e g a t i v e t e n d e n c i e s in, 2 6 1 - 2 6 2 nonfarm e m p l o y m e n t and, 1 0 2 - 1 0 3 A g r i c u l t u r a l e m p l o y m e n t , 105, 134, 213, 214 i n c r e a s e in, 2 9 4 poverty and, 140 (table) seasonality of, 2 9 9 n 3 s h i f t in, 171 w a g e rates for, 179 (table) A g r i c u l t u r a l g r o w t h , 4 7 , 133, 171, 2 5 3 , 276, 285 cost of, 1 7 2 - 1 7 3 e c o n o m i c development and, 252 industrial e c o n o m y and, 2 8 9 - 2 9 0 i n v e s t m e n t in, 3 9 n l n o n a g r i c u l t u r a l e m p l o y m e n t a n d , 153 poverty and, 204

subcontracting and, 267 Agricultural households, income s o u r c e s f o r , 197 ( t a b l e ) A g r i c u l t u r a l l a b o r , 1 0 4 , 115 c h a n g e s in, 2 4 2 g r e e n r e v o l u t i o n a n d , 1 1 0 - 1 11 i n c r e a s e in, 101, 1 7 0 s e a s o n a l i t y in, 4, 17 Agricultural processing expansion of, 1 9 9 - 2 0 0 value added by, 201 Agricultural producers, income diversification among, 110-113, 115 A g r i c u l t u r a l p r o d u c t i o n , 8, 5 2 , 171 c o m m e r c i a l i z a t i o n o f , 9 9 , 100 consolidation and, 258 g r e e n r e v o l u t i o n a n d , 103 g r o w t h in, 1, 3, 14 ( t a b l e ) , 102, 190, 258 industrialization and, 286 n o n f a r m e m p l o y m e n t a n d , 38, 127nl1 n o n f a r m p r o d u c t i o n a n d , 102 Agricultural sector backward and f o r w a r d linkage of,

rural n o n f a r m labor and, 241, 251, 252, 2 6 1 - 2 6 2

307

200 cash crop export, 146 c o m m e r c i a l i z a t i o n o f , 7 4 , 103 declining role for, 7 (figure) food-producing, 146 f o r e i g n e x c h a n g e f r o m , 135 g r o w t h in, 15 ( t a b l e ) , 136, 167, 169-170, 200 modernization of, 2 5 2 - 2 5 3 policy discrimination against, 189-190, 203 rural n o n a g r i c u l t u r a l s e c t o r a n d , 153 s t r u c t u r a l c h a n g e in, 19, 1 7 0 - 1 7 3 subsidies for, 2 5 3 - 2 5 5 , 258, 260 s u b s i s t e n c e c h a r a c t e r o f , 135 tax r a t e s o n , 2 6 5

308

Index

w a g e rates in, 17 ( t a b l e ) w o m e n in, 48, 59, 60, 67, 75, 8 1 - 8 2 , 86, 9 4 n 2 , 100, 1 1 1 - 1 1 2 , 1 2 7 n 7 Agricultural w a g e s , 2 4 0 agricultural prices and, 176 g r o w t h of, 1, 3, 54, 162, 196, 200-201 s e a s o n a l variation in, 1 7 6 - 1 7 7 A g r o - i n d u s t r i a l t r a n s i t i o n , s t a g e s of, 145

s u p p o r t f r o m , 116, 117 B a n i a s , 77, 8 2 fiari-based activities, w o m e n and, 100 B a u t i s t a , R., 145 B e n e r i a , L o u r d e s , on w o m e n ' s role, 74 Bengkok land, allocation o f , 2 3 7 Bennholdt-Thomsen, Veronika on i n v e s t m e n t in the poor, 7 6 on s u b s u m p t i o n of labor, 9 2 B h a n g i s , 77, 82

A g r o p r o c e s s i n g , i n v e s t m e n t in, 2 1 5 A h i r s , 77 g r a z i n g land for, 7 8 l a n d o w n e r s h i p by, 7 9 A l a m , M . M . , on hired labor, 115 A n d e r s o n , D e n n i s , on n o n f a r m employment, 8 - 9 A n t i - C h i n e s e protest m o v e m e n t , 221 Apprenticeships (magang), 235 A q u i n o , C o r a z o n , land r e f o r m by, 143-144

B h u t a n , agricultural p r o d u c t i o n in, 7, 14 (table) Bicol, labor force participation in, 140 (table) B i o t e c h n o l o g y , potential of, 34, 101 B o w r i n g T r e a t y (1855), 174 B r a y , F., 4 7 B R D B . See B a n g l a d e s h Rural D e v e l o p m e n t Board B r o a d c a s t i n g , 181, 2 9 4 Brokers, 66-67, 244n24 c o n t r a c t s with, 181 l a n d l e s s w o r k e r s and, 186 n o n a g r i c u l t u r a l j o b s and, 5 9 using, 6 2 - 6 6 , 182, 184 B r o w n , Lester, on h e l p i n g poor, 94-95n7 B S C I C . See B a n g l a d e s h S m a l l and C o t t a g e Industries C o r p o r a t i o n Burma agricultural g r o w t h in, 14 (table), 15 (table) G D P structure for, 11 (table) industry G D P in, 290 labor f o r c e structure in, 13 (table) w a g e rates in, 17 (table)

Bangladesh agricultural g r o w t h in, 14 (table), 15 (table) d i v e r s i f i c a t i o n in, 4 8 e m p l o y m e n t c o n d i t i o n s in, 9, 14 e x p o r t s by, 1 0 5 - 1 0 6 G D P structure for, 11 (table) global e c o n o m i c r e s t r u c t u r i n g a n d , 108-110 labor force s t r u c t u r e in, 13 ( t a b l e ) labor use in, 111 (table) n o n f a r m e m p l o y m e n t in, 16 ( t a b l e ) rural e c o n o m y in, 2, 99, 1 0 5 - 1 0 7 , 281 w a g e rates in, 17 (table) B a n g l a d e s h Institute of D e v e l o p m e n t Studies, 113 B a n g l a d e s h M a n p o w e r S u r v e y , on rural w o m e n , 115 B a n g l a d e s h Rural D e v e l o p m e n t B o a r d ( B R D B ) , 1 2 7 n 9 . See also Integrated Rural D e v e l o p m e n t Program B a n g l a d e s h S m a l l and C o t t a g e Industries C o r p o r a t i o n ( B S C I C ) , 127nl0 credit s c h e m e s o f , 118 e m p l o y m e n t g e n e r a t e d by, 119 (table) rural industrial e s t a t e s and, 107

C a p i t a l a c c u m u l a t i o n , 92, 241, 253, 277, 2 7 8 labor f o r c e r e p r o d u c t i o n a n d , 7 6 s o u r c e s of, 2 3 2 C a s s a v a d i g g i n g , 1 8 5 - 1 8 6 , 188 C a s t i l l o , Gelia, 3 9 n 2 on land r e f o r m , 137 C a s u a l e m p l o y m e n t , d e m a n d for, 112, 125 C e n s u s of A g r i c u l t u r e and Integrated S u r v e y of H o u s e h o l d s ( P h i l i p p i n e s ) , 133 C e n t r a l Plains h a r v e s t i n g in, 184, 185 l a b o r s h o r t a g e s in, 175, 2 0 3

Index

309

mechanization in, 180, 181 rice production in, 181, 199 w a g e rates in, 177 (table), 1 7 8 - 1 7 9 Certificates of Land Transfer (CLTs), distribution of, 143 Chaebols, 289 C h a m a r s , 77, 82 e m p l o y m e n t for, 7 9 - 8 1 l a n d o w n e r s h i p by, 78 Chang roi thon, 1 8 7 - 1 8 8 C h a y a n o v , Aleksander Vasilevich Lenin debate and, 1 0 2 - 1 0 4 rural class formation and, 103 Chen, Marty, 86 Child labor, 15 China

" C o n s o l i d a t i o n " strategies, 2 1 6 - 2 1 7 Consumer goods income sources for, 225 (table) in Jatinom, 224 (table), 2 2 5 (table) purchasing, 2 2 4 - 2 2 5 , 230, 232 C o n s u m e r needs, satisfying, 2 0 1 - 2 0 2 , 261 Contracts, 183 (table), 214, 254 recruitment and, 1 8 1 - 1 8 9 types of, 186 See also Subcontracts Cottage industries, 108, 123, 125 family labor for, 1 1 8 - 1 1 9 production by, 109 seasonal labor in, 112 w o m e n in, 119

agricultural growth in, 14 (table), 15 (table) G D P structure for, 11 (table) rural labor force in, 250 (table) rural transformation in, 6, 249 Chinese traders, 221, 2 4 3 n l 9 Circular migration, 214, 217, 222, 284-285 incidence of, 222 (table), 223 (table) Class relations analysis of, 49 inequalities in, 90, 91 w o m e n and, 9 3 C L T s . See Certificates of Land Transfer C o m b i n e s , using, 54, 63, 66 Commercialization, 26, 74, 99, 100, 103, 259 consolidation and, 261 C o m m o d i t y markets autonomy of, 9 9 - 1 0 0 control of, 36 internationalization of, 5 state role in, 37 C o m m u n i s t Party, in Indonesia, 221, 243-244n21 C o m m u n i t y , significance of, 7 C o m m u n i t y organization strategies, 35 C o m m u t i n g , incidence of, 222, 222 (table), 2 2 3 (table) Consolidation, 47, 56, 262, 2 6 8 - 2 6 9 n 3 agricultural productivity and, 258 division of labor and, 267 e f f e c t s of, 261 labor shortages and, 172 problem of, 2 5 8 - 2 5 9

See also H o m e - b a s e d industries Credit contract, 186 Cultivation, 57, 170 types of, 181, 294 Daily laborers, vulnerability of, 112 Dairy cooperatives, 83, 87, 91 problems with, 89, 90 support for, 9 3 w o m e n and, 86 Dairying class-gender bias and, 91 development of, 77, 78, 84, 85, 88, 226 strategies for, 8 8 - 8 9 transformation of, 88, 9 5 - 9 6 n l 9 women and, 85, 86, 89, 90 Denationalization, 108, 120 Department of T r a d e and Industry (Philippines), 163n3 Deterioration trajectory, 1, 297 Development, 4, 6, 106, 213, 299 agriculture and, 252, 290, 2 9 6 - 2 9 7 composition and d y n a m i c s of, 280 g o v e r n m e n t - s p o n s o r e d , 101 human resource, 2, 1 9 2 - 1 9 3 international trade and, 19 nonagricultural, 286 outcome of, 3 6 - 3 7 stages of, 285 state, 299 w o m e n and, 5 Development theory, 280 debates about, 1 9 - 2 8 metaphor and, 2 1 - 2 4 Development trajectory, 1, 297

310

Index

Diets, 8 gender and, 83, 90 poor people's, 88 Differentiation, 48, 103, 104, 133, 226, 268 class, 75 cultural adaptation and, 24 economic, 282 evolution of, 2 7 5 - 2 7 6 income generation schemes and, 75 labor, 283 macro-micro relationships and, 283 political, 282 rural, 23, 105, 107, 127n7, 277 state responses to, 107 See also Agrarian differentiation; Employment differentiation; Nonfarm employment differentiation Discontinuity, 2 4 - 2 5 , 39n5 Diversification, 4, 6, 23, 32, 66, 120, 170, 240, 298 analysis of, 47, 48, 49, 6 0 - 6 2 , 68, 276 class, 275 immiseration and, 47, 6 7 - 6 8 income, 110-113, 115, 297 landholders and, 61 nonagricultural, 62 obscuring, 9, 24 processes of, 48, 61, 127n 11, 145, 224 resource, 101, 104 significance of, 1, 15-16, 29, 67 See also Agricultural diversification Division of labor, 36, 59, 61, 175 changes in, 35, 100, 108, 111 dairying and, 91 farmland concentration and, 267 gender-based stratification and, 282 household, 22, 103, 120, 268 rural, 259 women and, 120 Dryland agriculture, 224, 237 East Asian model, 276, 298 significance of, 2 8 5 - 2 9 7 Edgren, G., on rural employment, 2 Education, 170, 192-193, 213, 286, 293-294 employment and, 8 0 - 8 1 , 193 expansion of, 30, 146

impact of, 3 - 4 , 61, 204n8 in Jatinom, 234 (table) women and, 83 EEC. See European Economic Community Emancipation Patent (EP), 143 Employment, 4, 23, 29, 38, 101 agricultural development and, 30 casual, 112, 125 changes in, 135 children and, 125 daily, 125 demand for, 124, 128nl7, 135 disadvantages in, 76 education and, 80-81 growth of, 30, 121, 121 (table) inconsistent definitions of, 116 by occupation group, 121 (table), 122 (table) women and, 109, 121, 125 See also Agricultural employment; Nonagricultural employment; Nonfarm employment; O f f - f a r m employment; Productive employment; Rural employment; Seasonal employment; Selfemployment; Underemployment; Unemployment Employment differentiation, 6, 297 agriculture and, 104 exploring, 2 9 5 - 2 9 6 macro-micro relationships and, 275, 276, 283, 295 political economy and, 278, 285 processes of, 279, 284 significance of, 275-276, 277, 285, 2 9 4 - 2 9 5 , 297 Entrepreneurship, development of, 108, 110 EP. See Emancipation Patent European Economic Community (EEC), Operation Flood and, 84 Exchange labor, 101, 186-188 Export-processing zones, employment in, 127—128n 12 Exports agricultural, 144, 146, 147, 170-171 manufacturing, 109, 174 Fabella, Raul, on rural economy, 145 Family, significance of, 7. See also Rural families

Index

Family Income and Expenditure Surveys (FIES), 139 Family labor, 30, 118, 142, 172, 240, 284 hired labor and, 11 1 labor demand and, 187 time-allocation behavior and, 158 Farm incomes, 245 increase in, 146 o f f - f a r m sources of, 9 Farming labor supply and d e m a n d and, 101 rural laborers for, 259 subsidies for, 2 6 6 - 2 6 7 Farm size decline of, 136, 155, 161 distribution of, 137, 138 (table), 170 nonfarm activities and, 239 FDI. See Foreign direct investment Feed factories, 200. See also Fodder Feeny, David, on underdevelopment, 189 Feldman, Shelley, 16 household metaphor and, 22 on income diversification, 297 Fertilizers, 33, 154, 190, 252 increased use of, 3 subsidies for, 4, 60, 68n4 FIES. See Family Income and Expenditure S u r v e y s First Five-Year Plan (Bangladesh), 109 First Year Plan (China), rural r e f o r m s in, 249 Floro, Sagrario, on uneven development, 1 9 - 2 0 Fodder, obtaining, 8 8 - 8 9 . See also Feed factories Fodder fields (siliao tian), 258, 259 Folbre, Nancy, 75 Food for Work programs, 112 Food grain fields (kouliang tian), 258-259 Food security, problems with, 8 Ford Foundation, 86, 1 2 7 n l 0 Foreign direct investment (FDI), 293 Foucault, Michel, 39n5 G B P . See G r a m e e n Bank Project G D P . See G r o s s domestic product Gem cutting, background of, 202 Gender issues, 6, 90, 91, 119 division of labor and, 282

311

rural work p r o g r a m s and, 75 wage rates and, 1 7 7 - 1 7 8 , 179 w o m e n and, 93, 94 George, Shanti, 86 on dairy sector, 84 on Operation Flood, 85 Giddens, Anthony, agency and, 26 G o l d m a n , R., on w a g e increases, 54 G o v e r n m e n t intervention, 66 disincentives f r o m , 4 reducing, 37 G o v e r n m e n t jobs, 61, 65 income from, 232 Grameen Bank Project (GBP), 1 2 7 n l 0 Green revolution, 3, 47, 74, 77, 78, 101 agriculture and, 103, 110-111 class-gender inequalities and, 90, 91 diffusion of, 102 o f f - f a r m work and, 104, 216 u n d e r e m p l o y m e n t and, 112 Gross domestic product (GDP), 7, 10-11 (table) Habermas, Jiirgen, agency and, 26 Hardjono, Joan, 241 Hareven, T a m a r a , on work and family, 29-30 Hart, Gillian, 16, 104, 278 household metaphor and, 22 Harvesting, 185 contracts for, 182 sugarcane, 182, 184, 189 wage rates for, 184 Hayami, Yujiro, 134 Heady, E.O., 180 Hermoso, V., on industry-to-agriculture linkage, 153 High-yielding varieties (HYVs), 158 adopting, 115, 291, 292 Hired labor, 1 8 6 - 1 8 8 family labor and, 1 11 recruitment and, 1 8 2 - 1 8 5 using, 111, 118 Home-based industries, 123, 228 gender exploitation in, 119 production by, 109 See also Cottage industries Hong Kong G D P of, 10 (table), 2 0 4 n l labor force structure in, 12 (table) Hossain, Mahabub, 113

312

Index

Household contract responsibility system, 254 Household income average, 237, 238 (figure), 239 (figure) control of, 120 diversification of, 49, 100, 102, 104 service sector work and, 237, 239-240 sources of, 237 Household metaphor, 2 1 - 2 4 , 39n4 Households as analysis unit, 123-124 annual growth rates of, 117 (table) differentiated, 23, 103 income sources for, 197 (table) labor allocation by, 175 nonfarm activities and, 159 (figure) policy initiatives for, 120 political and social mobilization and, 278 as production units, 103, 126n3 relations in, 59, 60, 75, 126 as residential units, 55, 2 7 7 - 2 7 8 resource distribution within, 83 subgroup shares in, 117 (table) subsistence-level, 124 women and, 74, 75, 113, 284 See also Rural households H-R model departures from, 1 4 6 - 1 4 7 displacement phenomenon of, 144-145 trade and, 147 Z-goods sector and, 146 Human resource development, 2, 192-193 Hymer, Stephen, on nonfarm sector, 144 HYVs. See High-yielding varieties I FAD. See International Fund for Agricultural Development Ikmal, Md., on labor-displacing technology, 5 4 - 5 5 Ileto, Reynaldo, on interest formation, 25 ILO. See International Labour Organisation Immiseration, 28, 47, 6 7 - 6 8 , 102 Import-substituting industries, 174, 287, 289

growth of, 145 structural difficulties from, 173 Income gap minimizing, 254 urban-rural, 137 Income-generating projects, 120, 123 limitations of, 93 "welfare" bias in, 7 4 - 7 5 women and, 7 4 - 7 5 , 84, 90, 9 1 - 9 2 , 93 Income patterns, shifts in, 5 5 - 6 0 India agrarian differentiation in, 6 agricultural growth in, 14 (table), 15 (table) G D P structure for, 11 (table) industry GDP in, 290 labor force structure in, 13 (table) nonfarm employment in, 16 (table) wage rates in, 17 (table) Indo-Dutch Programme on Alternatives in Development, 85 Indonesia agricultural growth in, 14 (table), 15 (table), 212-213, 290 G D P of, 10 (table), 204nl industry GDP in, 290 labor force structure in, 12 (table) labor processes in, 9, 2 1 2 - 2 1 7 macroeconomic change in, 2 1 2 - 2 1 7 nonagrarian-based economic interests in, 6 public works programs in, 216 rural nonfarm employment in, 2 1 2 - 2 1 7 , 281 wage rates in, 17 (table) See also Java Industrialization, 1, 19, 50, 134, 173-174, 285, 288, 2 9 1 - 2 9 4 agrarian relations and, 276 agricultural development and, 286, 289-290 capital-intensive, 291 financing, 3 o f f - f a r m employment and, 38, 289 political economy of, 133 priorities for, 39nl rural, 18, 76-77, 285 rural income and, 286 Industrial policy impact of, 172 inward-looking, 291

Index

Infrastructure agricultural, 3 improvement of, 286 rural, 203, 2 2 1 - 2 2 2 social, 2 1 3 Integrated Rural D e v e l o p m e n t Program (IRDP), 86, 87, 9 5 n l 7 . See also Bangladesh Rural D e v e l o p m e n t Board International aid, impact of, 126 International Fund for Agricultural Development (IFAD), 1 2 7 n l 0 International Labour Organisation (ILO), 94n3 International Rice Research Institute, 3, 134, 136 IRDP. See Integrated Rural Development Program Irrigation, 35, 154, 170, 190, 2 1 3 impact of, 1 8 6 - 1 8 7 labor demand and, 172, 175 Jain, Devaki, 86 Japan e c o n o m i c growth in, 287 G D P structure for, 11 (table) industry G D P in, 290 internal market of, 2 8 7 labor force structure in, 13 (table) security issues and, 2 8 7 w a g e rates in, 17 (table) Jatinom agriculture in, 222, 223, 242 circular migration and c o m m u t i n g in, 222 (table), 223 (table) e c o n o m i c growth in, 2 1 1 - 2 1 2 , 242 farm structure in, 223 (table) income and consumption in, 223-225 location and characteristics of, 220-221 m a n u f a c t u r i n g in, 2 2 6 - 2 2 7 mean household income in, 238 (figure), 239 (figure) n o n f a r m e m p l o y m e n t in, 212, 2 2 5 - 2 2 6 , 227 (table), 2 4 0 service sector activities in, 2 2 8 (table), 229, 229 (table), 231 (figure), 234 (table) social and e c o n o m i c background of, 221-223 Jats, 77

313

e m p l o y m e n t for, 7 9 - 8 1 l a n d o w n e r s h i p by, 78 Java agriculture in, 211, 2 1 3 diversification in, 4 8 e c o n o m i c growth in, 2 1 3 e m p l o y m e n t shares in, 215 (table) income distribution in, 2 4 4 n 3 2 landlessness in, 2 4 3 n l 7 land redistribution in, 220 m a n u f a c t u r i n g in, 212, 213, 243n6 nonagricultural work in, 20, 211, 212, 214, 2 1 8 - 2 1 9 (table), 2 4 3 n 6 transport " r e v o l u t i o n " in, 216 See also Indonesia Jawatan Kuasa Kemajuan Kampong ( J K K K ) , P A S and, 6 4 - 6 5 J K K K . See Jawatan Kuasa Kemajuan Kampong J o n g s u w a t , Nongluck, on mechanization, 180 Kao nak, work on, 178 Kasetsart University Rural O f f - F a r m E m p l o y m e n t Assessment Project, 197 Kedah state (Malaysia) e c o n o m i c growth in, 52 g o v e r n m e n t spending in, 64 structural change in, 52 Kinship, 65 diversification and, 6 2 intergenerational transfers and, 62, 63 stratification by, 282 Klaten district, 217, 220, 2 4 4 n 2 2 Korea agricultural growth in, 15 (table), 288-289 e c o n o m i c growth in, 2 8 7 education in, 192 G D P structure for, 10 (table) industrialization in, 289, 290 internal market of, 287 labor force structure in, 12 (table) security issues and, 2 8 7 wage rates in, 17 (table) K u m h a r s , 77, 82 l a n d o w n e r s h i p by, 79 Kurien, V., Operation Flood and, 84 Labor child, 15

314

Index

control of, 54 daily, 112 exchange, 101, 1 8 6 - 1 8 8 mobilization of, 54 subsumption of, 92 technology and, 54 w o m e n and, 60, 83, 100, 113, 120, 148 See also Agricultural labor; Division of labor; Family labor; Hired labor; N o n f a r m labor; Rural labor; Surplus labor; W a g e labor Labor absorption, 18, 291 crop diversification and, 241 rural sector, 1 3 9 - 1 4 0 , 1 4 2 - 1 4 4 Labor demand increased, 112, 115, 175, 185, 216 meeting, 18, 187 seasonality and, 176, 214 " L a b o r flexibilization" process, 50 Labor force, 66, 127n4 growth of, 162 structure of, 1 2 - 1 3 (table), 125 Labor force participation, 8, 134—135 estimating, 38, 135 increase in, 139 Labor Force Survey, 113, 115, 176 Labor forward contracts, types of, 1 8 2 - 1 8 4 , 183 (table) Labor gangs, 54, 59 Labor-intensive industries, 2 4 2 n 2 exports by, 145 w o m e n and, 282 Labor markets adjustments in, 73, 126, 167, 174-194 d e m a n d s on, 107 growth of, 294 nonagricultural, 3 1 - 3 2 seasonality and, 194 segmentation of, 31, 32, 2 1 3 - 2 1 4 studies of, 101 viability of, 1 7 - 1 8 Labor migration, 55, 192, 226 increase in, 37 u n e m p l o y m e n t and, 2 9 2 - 2 9 3 Labor mobility, 1, 55 increase of, 2 2 2 - 2 2 3 Labor productivity, 171, 295 c h a n g e s in, 2, 33, 139 distribution of, 295 improvement in, 4, 170, 252, 253

Labor relations, transformation of, 28, 38, 100 Labor shortages, 170, 172, 181, 191 contracts and, 182 mechanization and, 203 problems with, 175, 1 8 7 - 1 8 8 seasonal, 175, 176 Labor supply, 184, 1 8 9 - 1 9 2 Laguna economically active population in, 156 (table), 157 (table) e m p l o y m e n t in, 161 (table) income sources in, 161 (table) n o n f a r m activities in, 1 5 4 - 1 5 5 , 158, 159 (figure), 160 (figure) output in, 161 (table) Land categories of, 258 per capita, 290 productive utilization of, 2 6 8 tax p a y m e n t s on, 265 Land distribution, 5 5 - 6 0 , 2 1 6 - 2 1 7 , 224, 290, 291 migration and, 192 pattern of, 286 Landless laborers, 106, 220, 291 borrowing by, 186 brokers and, 186 d e p e n d e n c e of, 116 e m p l o y m e n t for, 3, 125, 236 income for, 161 increase in, 155 labor market and, 1 1 2 - 1 1 3 n o n f a r m activities and, 160 (figure) occupational structure for, 114 (table) poverty among, 139 Landlessness, 214, 290 increase in, 5 5 - 5 6 , 158 Land market m e c h a n i s m , introducing, 267-268 Land O c c u p a n c y Survey ( B a n g l a d e s h ) , 113 Landowners, 2 4 3 n l 8 labor-displacing technology and, 6 2 n o n f a r m work and, 241 occupational structure for, 114 (table) tenacity of, 6 2 - 6 3 Land productivity improving, 8, 33, 266, 267 problems with, 2

Index

Land reform, 3, 142-144, 158, 243-244n21, 286 implementation of, 292 lack of, 73 Land transfer, 262 compensation for, 264 delaying, 63 Land use changing patterns of, 268 mixtures of, 20 Large-scale cultivation development assistance for, 110 undertaking, 266 Leasing, long-term, 62 Legitimation, crisis in, 278, 279 Leiserson, Mark, on nonfarm employment, 8 - 9 Lenin, Vladimir Chayanov debate and, 102-104 rural class formation and, 103 Liberal economic market, emergence of, 27 Linkages, 21, 201 agricultural and nonagricultural, 4, 5, 153 backward and forward, 200, 203 intensification of, 241 vertical, 277 Lipton, Michael, "urban bias" hypothesis of, 19 Li lu peasants, land for, 260 Livestock sector, 88 growth of, 200, 226 income from, 224 poor and, 245n38 women and, 85 Luna, C., on industry-to-agriculture linkage, 153 Luong, Hy V., on macro-micro relations, 2 7 9 - 2 8 0 Macapagal, Diosdado, land reform by, 142 Macroeconomy, 5, 276 race-class conflict and, 4 9 - 5 0 Macro-micro relationships, 5, 2 7 6 - 2 8 0 , 282, 299 agency and, 27 distortions in, 2 6 - 2 7 employment differentiation and, 276 impact of, 275, 283 new economics and, 2 8 4 - 2 8 5

315

understandings of, 277 M A D A . See Muda Agricultural Development Authority Magsaysay, Ramon, land reform by, 142 Malaysia agrarian differentiation in, 6 agrarian strategy in, 5 0 - 5 2 agricultural growth in, 14 (table), 15 (table), 290 economy of, 49 G D P of, 10 (table), 2 0 4 n l , 290 industrialization in, 50, 290 labor force structure in, 12 (table) wage rates in, 17 (table) Manufacturing, 2 2 6 - 2 2 7 demand for, 173 export, 109, 174 growth of, 233, 273, 281 urban bias in, 213 women and, 282 Marcos, Ferdinand agriculture and, 134 land reform by, 144 New Society and, 142 Marginalization, 176 labor, 111-112 Market grain supply certificates, 259-260 Mechanization, 62, 199, 252, 253, 294, 299n5 consolidation and, 261 diversification and, 60 impact of, 48, 52, 5 4 - 5 5 , 56, 101, 111-112, 180-181 labor shortage and, 203 meanings of, 26 production costs and, 180 small-scale holdings and, 5 7 - 5 8 wage rates and, 180-181 Medalla, F„ 147 Meos, 77, 81, 82, 95n9 landownership by, 78, 79 Merbabu Merapi Complek ( M M C ) , 243n20 Metaphors problems with, 2 3 - 2 4 theory and, 2 1 - 2 4 Methodology, 22, 39 Micro-macro relationships. See Macromicro relationships Mies, Maria, 92, 94n3

316

Index

Migration, 4, 18, 32, 37, 67, 267 circular, 190-191, 214, 217, 222, 222 (table), 223 (table), 2 8 4 - 2 8 5 controlling, 253 impact of, 191-192 labor, 37, 55, 191, 192, 226, 292-293 overseas, 1 9 1 - 1 9 2 patterns of, 109 rural-to-urban, 172, 190, 253 seasonal, 77, 191 slowing of, 146 strategies for, 126nl Milk cooperatives, 86, 9 1 - 9 2 , 9 5 n l 5 Milk products consumption of, 88 costs of, 85 Ministry of Agriculture and Cooperatives (Thailand), 176, 181,

202 Ministry of C o m m e r c e (Thailand), 185 Ministry of Industries (Bangladesh), 108 MMC. See Merbabu Merapi Complek Modernization agricultural, 211, 226, 2 5 2 - 2 5 3 women and, 74 Moeya, 35 Mohammad, Mahathir, 64 Monopsony, 3 6 - 3 7 labor market, 186 Muda, 48 agricultural growth in, 54 diversification in, 49, 50, 5 2 - 6 2 rice subsidies in, 51 w o m e n ' s labor organizations in, 61 Muda Agricultural Development Authority ( M A D A ) , 51, 54, 68n6 Muda Irrigation Scheme, 5 2 - 5 3 farm size and, 53 (table) investment in, 51 tenurial patterns in, 53 (table) Multiple cropping, 187, 203 Muqtada, M., on hired labor, 115 Muqtada, N., on rural employment, 2 Nais, 77 National Economic and Development Authority (NEDA), 137, 139, 148 National Front (Malaysia), 51, 66 National Statistics Office (Philippines), 133

Natural resources changing status of, 3 3 - 3 4 direct administration of, 35 NEDA. See National Economic and Development Authority NEP. See New Economic Plan Nepal agricultural growth in, 14 (table), 15 (table) GDP structure for, 7, 11 (table) labor force structure in, 13 (table) New Economic Plan (NEP) (Malaysia), 49, 66 race-class conflicts and, 50 redistributive phase of, 50 state resources and, 51 New economics, 2 8 3 - 2 8 5 New economies, emergence of, 276, 280-285 New Industrialization Policy (NIP) (Bangladesh), 108, 109, 125 New Society (Philippines), 142 NGOs. See Nongovernmental organizations NIP. See New Industrialization Policy Nonagricultural employment, 106-107, 145, 147-148, 155, 158, 161, 167, 190, 242, 242nl agricultural growth and, 153 distribution of, 217 increase in, 6, 3 0 - 3 1 , 64, 148, 194, 196, 253 in Java, 214, 217, 2 1 8 - 2 1 9 (table) low-wage, 18, 59 men and, 48, 5 8 - 5 9 , 60, 61, 62, 66, 214 profit recycling for, 215 seasonality and, 148, 194 surplus labor and, 252 training for, 31, 175 urban-based, 213, 216 women and, 68n7, 214, 217 See also Nonfarm entries; Off-farm entries Nonagricultural income, 115, 240, 243n7 growth of, 64, 68, 146, 155, 196-197 overestimated, 15 sources of, 47 Nonagricultural sector, 29, 32, 200 employment in, 196 income from, 202 tax rates on, 265

Index

N o n f a r m , defined, 2 4 2 n l N o n f a r m e m p l o y m e n t , 14, 111, 161, 202, 242n2, 2 5 9 - 2 6 0 agrarian differentiation and, 38, 39, 275 agrarian economy and, 102-103, 127nl1 agricultural diversification and, 241 agricultural growth and, 241, 252 analysis of, 6, 32, 38, 101, 147, 223, 240, 280, 2 9 8 - 2 9 9 changes in, 100, 120, 126, 242 consumption-linkage activities and, 153 d e m a n d for, 101, 124, 125, 126 farm size and, 239 green revolution and, 216 growth of, 1, 6, 99, 102, 109-110, 133, 1 5 4 - 1 5 5 , 158, 162, 194, 203, 216, 251, 298 in Indonesia, 211, 2 1 2 - 2 1 7 investment in, 241 in Jatinom, 2 2 5 - 2 2 6 , 227 (table) labor supply for, 242 monthly workdays for, 159 (figure), 160 (figure) o f f - f a r m e m p l o y m e n t and, 5, 281 poor and, 2 1 5 - 2 1 6 problems with, 251 rural economy theory and, 126 seasonality and, 258 significance of, 29, 275, 279, 280, 283, 285 structure of, 226 trends in, 1 4 7 - 1 4 8 , 151-153, 1 9 6 - 1 9 7 , 212, 217, 258 w o m e n and, 94n2, 281, 2 8 2 - 2 8 3 See also Nonagricultural entries; O f f - f a r m entries Nonfarm e m p l o y m e n t differentiation, 278, 279 patterns of, 283, 284 significance of, 277 Nonfarm income, 1, 28, 161, 197, 240, 262, 265 Nonfarm labor agricultural growth and, 2 6 1 - 2 6 2 distribution of, 114 (table) e m e r g e n c e of, 38, 39 returns from, 214 w o m e n and, 280, 281, 283 Nonfarm production, 99

317

agricultural production and, 102 c h a n g e s in, 100 e x p a n d i n g , 109 N o n g o v e r n m e n t a l organizations ( N G O s ) , 108, 109 Non-land-based agriculture, 239, 241 N O R A D . See Norwegian Development Assistance, Ministry of D e v e l o p m e n t Cooperation Normative stabilization, 279, 284 Northern C h a o Phraya irrigation area, 176, 180 Norwegian D e v e l o p m e n t Assistance, Ministry of D e v e l o p m e n t Cooperation ( N O R A D ) , 1 2 7 n l 0 credit f r o m , 118 e m p l o y m e n t generated by, 119 (table) O f f - f a r m e m p l o y m e n t , 4, 14, 111, 286 c h a n g e s in, 1, 120 d e m a n d for, 99, 101, 115, 124, 125 e x c h a n g e labor and, 187 green revolution and, 104 industrial d e v e l o p m e n t and, 289 n o n f a r m e m p l o y m e n t and, 5, 281 seasonality and, 1 9 3 - 1 9 4 types of, 1 0 6 - 1 0 7 w o m e n and, 241, 281 See also Nonagricultural entries; N o n f a r m entries O f f - f a r m income, 28, 34, 147, 224, 232, 297 increasing, 148, 1 9 6 - 1 9 7 Operation Flood, 84, 85, 86, 88 class-gender inequalities and, 91 dairy cooperatives and, 9 0 problems with, 87 w o m e n and, 283 Operation Land T r a n s f e r (Philippines), 142 Orange farming, 228, 2 4 4 n 2 3 growth of, 222, 226 income f r o m , 223, 224, 225, 244n25 Organizational resources, 36 Oshima, Harry, 17, 3 9 n 2 Out-migration. See Migration Pajak, 6 2 - 6 3 Pakistan agricultural growth in, 14 (table), 15 (table)

318

Index

G D P structure for, 11 (table) labor force structure in, 13 (table) n o n f a r m e m p l o y m e n t in, 16 (table) w a g e rates in, 17 (table) P a k y a o system, 135 Parastatals, 3 6 - 3 7 , 108 Paris Aid Consortium for Bangladesh, 109 Partai Islam (PAS), 51 J K K K and, 6 4 - 6 5 National Front and, 64 U M N O and, 64, 66 PAS. See Partai Islam Pathanopas, Renu, on threshing, 181 Patronage, 52, 61, 6 3 - 6 4 brokerage and, 6 6 - 6 7 decline of, 48 Pattern, definitions of, 26 Peasants concerns of, 2 5 9 - 2 6 0 farming and, 3, 261 nonagricultural household status for, 267 taxes for, 266 P e o p l e ' s Daily, on consolidation, 268-269n3 Pernia, E., on industry-to-agriculture linkage, 153 Phiboon, Plak, 173 Philippines agricultural e m p l o y m e n t in, 15, 147 (table) agricultural growth in, 14 (table), 15 (table), 134, 144 e c o n o m i c growth of, 289, 292 G D P of, 10 (table), 134, 2 0 4 n l , 290 industrialization of, 290, 2 9 1 - 2 9 3 institutional changes in, 1 4 2 - 1 4 4 labor force participation in, 134—135 labor force structure in, 12 (table) land reform in, 1 4 2 - 1 4 4 nonagricultural e m p l o y m e n t in, 6, 15, 133, 147 (table) policy changes in, 1 4 2 - 1 4 4 rural employment in, 1 3 4 - 1 3 7 , 139, 149 (table), 150 (table), 281 rural families and income in, 150 (table), 151 (table), 152 (table) w a g e rates in, 17 (table) Piece-rate contracts, 1 8 8 - 1 8 9 Plantation economy, 221, 226

Polarization, 103, 276, 291 w a g e labor and, 2 4 - 2 5 Political change, impact of, 6, 29, 6 3 - 6 6 , 275 Poor profiting from, 7 3 - 7 4 , 7 5 - 7 7 , 94 self-reliance for, 110 Poverty, 4, 8, 133, 190, 194, 290, 291, 297 agrarian reform and, 142 agricultural growth and, 204 agricultural occupations and, 140 (table) alleviation of, 109, 121, 1 6 8 - 1 6 9 increase in, 73, 102 persistence of, 2 Presidential Decree 27 (1973) (Philippines), 1 4 2 - 1 4 3 Privatization, 34, 36 shift toward, 108, 110, 116, 174 P r o c u r e m e n t prices, 265, 266 Production method, 180-181, 190 Productive e m p l o y m e n t , 8, 73, 296 challenge of, 28 finding, 162 growth in, 268, 276, 291 Productivity, 3, 8, 30. See also Labor productivity; Land productivity P r o g r a m m e on Rural W o m e n in A n d h r a Pradesh, 94n3 Proletarianization, 104, 281 Public works, 2 - 3 , 36, 241 Purdah, 1 11 impact of, 109, 126 Quasi-state corporations, 3 6 - 3 7 , 108 Race-class conflicts m a c r o e c o n o m y and, 4 9 - 5 0 N E P and, 50 Rajasthan state dairy, 8 3 Ranis, Gustav, H-R model variants by, 146-147 Recruitment, 16, 54 contracts and, 1 8 1 - 1 8 9 p r o b l e m s with, 185 Regionalization evolving or persistent, 277 patterns of, 276 Reproduction, 101, 105, 127n4 costs of, 78, 128n 18

Index

responsibility for, 126 w o m e n and, 7 5 - 7 6 , 83, 104, 127n7 Research themes developing, 2 8 - 3 2 examples of, 3 2 - 3 8 Rcsnick, Stephen, on nonfarm sector, 144 Resource-generating schemes, 120 Resource management, 4, 35, 120, 285 Responsibility fields (zeren tian), 258 Rce export restrictions on, 171 HYV, 154, 291 import and production costs of, 68n4 subsidies for, 51, 53, 67, 68n4 See also Wet-rice agriculture Rice mills, work at, 199 Rice peasantry, preservation of, 49 Rice production, 68n4, 154, 184, 188 contract for, 182 growth of, 170-171, 213 income from, 222 labor for, 54 mechanization of, 52, 68n5, 111-112 seasonal factors in, 176-177 surplus, 215 techniques for, 181 wage rates for, 178 (table) women and, 154 Rice self-sufficiency, goal of, 213 Ricoeur, Paul, agency and, 26 Risseeuw, Carla, 93 Rural class formation, 35, 103, 104 wage labor and, 25 Rural economy, 101 agrarian processes and, 5 in Bangladesh, 105-107 changes in, 37-38, 2 2 5 - 2 2 6 , 295 nonagricultural activities in, 194—195 in Philippines, 134-137, 139, 144 Rural employment, 296 agriculture and, 139 changes in, 18-19 contribution to, 223 demand for, 73, 107, 116-117, 123, 124, 125 distribution of, 147 (table), 149 (table), 150 (table) feminist scholarship on, 105 by industry, 141 (table) limits on, 106 poverty alleviation and, 109

319

productivity of, 194, 283 resource management and, 35 review of, 1 - 2 , 6, 7 - 9 , 14-19, 33 seasonality of, 196 social significance of, 31 (figure), 35, 295 women and, 76, 226 Rural families distribution of, 150 (table), 151 (table), 152 (table) productivity of, 30 Rural households changes in, 116, 277 farm and nonfarm work for, 260, 262 feminist scholarship on, 105 income sources for, 198 (table) in Thailand, 196 (table) Rural income, 158, 198 (table), 262, 267, 297 distribution of, 150 (table), 151 (table), 152 (table) industrialization and, 286 nonfarm and off-farm sources of, 14 stimulus for, 216 Rural industrial estates, 107, 108 Rural Industries Survey, 113 Rural industry, 102, 2 5 1 - 2 5 2 agricultural growth and, 251 factors affecting, 197, 199 growth of, 37 problems for, 174 promoting, 4, 116 significance of, 7 Rural labor, 291 changes in, 4 - 6 , 268 in China, 250 (table) demand for, 110-113, 115-121, 123-124 policy reforms and, 37 retention of, 251, 252, 292 women and, 74, 282, 283, 284 Rural market infrastructure problems of, 203 limited extent of, 2 0 2 - 2 0 3 Rural nonfarm sector, 153, 262 complexity of, 115-121, 123 evolution of, 158, 161-162, 267 growth of, 144-147, 249 peasant-workers and, 260 structural change for, 133 Rural-to-urban income ratio, 15, 284-285

320

Index

Rural w o r k e r s average work hours of, 2 0 0 (table) n o n f a r m positions for, 262 out-migration of, 2 6 7 S a m a h a n g Nayon, EP and, 143 Scott, J a m e s on agrarian patronage, 5 1 - 5 2 on instrumental interest formation, 25 Seasonal e m p l o y m e n t , 3, 77, 175, 176 d e m a n d for, 112 w o m e n and, 9 4 n 2 Seasonality, 4, 148, 171, 1 7 6 - 1 7 7 , 1 9 3 - 1 9 4 , 196, 214, 258, 299n3 influence of, 1 7 - 1 8 , 202 Second Five-Year Plan (India), 289 Seeds hybridization of, 34 H Y V , 115, 158, 291, 292 impact of, 1 8 6 - 1 8 7 Segmentation, 21, 31, 32, 38 S e l f - e m p l o y m e n t , 30, 106, 217, 226, 228, 230, 240 child labor and, 15 education and, 193 rural, 1 5 - 1 6 , 118 support for, 118, 124 w o m e n and, 15 Self-sufficiency, 260, 261, 2 1 3 Semiproletarianization, 4 7 - 4 8 , 61, 66, 68, 76 Sen, Gita, 74 Service activities characteristics of, 2 2 8 (table), 234 (table) distribution of, 229 (table) establishment of, 231 (figure) growth of, 230, 241 income f r o m , 2 3 5 - 2 3 6 , 237, 239-240 in Jatinom, 227, 234 (table) labor-intensive, 2 9 9 n 3 old and new, 233, 2 3 5 - 2 3 7 subsistence-oriented, 2 4 0 - 2 4 1 types of, 2 2 9 - 2 3 1 Service sector, 236 acquiring skills for, 233, 234 (table), 235 c h a n g e s in, 242 d e m a n d for, 2 4 0 estimated size of, 3 7 - 3 8

growth of, 233, 2 8 0 - 2 8 1 , 283 opportunities in, 2 2 5 - 2 2 6 , 2 3 2 - 2 3 3 , 281, 285 w o m e n and, 135, 282, 284 Settlement trajectory, 5 Seventh Five-Year Plan (India), 9 5 n l 7 Shadli, Mohd., 55 Shamsul, A.B., 6 3 Shankpur class and gender in, 7 7 - 8 3 landlessness in, 79 (table) landownership in, 79 (table) male occupations in, 80 (table) population m a k e u p of, 7 7 - 7 8 w o m e n ' s work in, 82 (table) S h a n k p u r dairy cooperative, 86, 87 Share groups. See Labor g a n g s Sharma, Miriam, 16, 279, 2 8 3 household metaphor and, 22 Siamwalla, A m m a r , study by, 201 Singapore agricultural growth in, 15 (table) G D P of, 10 (table), 2 0 4 n l labor force structure in, 12 (table) Small farms, 171 increase of, 155 n o n f a r m activities and, 160 (figure) productivity problems for, 136 Small-scale credit schemes, shift toward, 108 Small-scale enterprises, 119, 228 e m p l o y m e n t by, 118 proliferation of, 146 seasonal labor in, 112 self-sufficiency of, 261 Small-scale holdings, 55, 56 tenacity of, 47, 53, 5 7 - 5 8 , 60, 67, 6 8 Social mobilization, 278, 282, 299 Social organization, shaping, 3 4 - 3 6 , 126 Social security, 279, 284 Social welfare, 110, 249, 2 7 9 S o c i o e c o n o m i c change, 29, 35, 275 rural-urban, 2 0 - 2 1 S o m j e e , A.H. and Geeta, on Operation Flood, 8 4 - 8 5 Specialization, 35, 259, 284, 295 consolidation and, 261 Squire, L., on wage increases, 54 Sri Lanka agricultural growth in, 14 (table), 15 (table)

Index

f e m a l e coir w o r k e r s in, 9 3 - 9 4 G D P structure for, 11 (table) labor force structure in, 13 (table) n o n f a r m e m p l o y m e n t in, 16 (table) w a g e rates in, 17 (table) Standing, Hilary, 76 on female a u t o n o m y , 9 3 State d y n a m i c role of, 2 7 8 - 2 7 9 rice production and, 5 3 State intervention, o u t c o m e of, 3 6 - 3 7 Stratification, 36, 38 gender- and kinship-based, 282 Structural transformation (de)politicization of, 299 rates of, 290 Subak, 35 Subcontracts, 266 agricultural d e v e l o p m e n t and, 267 types of, 2 6 3 - 2 6 5 See also Contracts Subleasing, problems with, 2 6 2 - 2 6 7 Subsidies agricultural, 4, 60, 68n4, 252, 2 5 3 - 2 5 5 , 258, 260, 2 6 6 - 2 6 7 f o r m s of, 2 5 3 - 2 5 4 ineffectiveness of, 67 nonagricultural, 67 rice, 51, 53, 67, 68n4 Subsistence production, 76, 101, 124, 221 feminist scholarship on, 105 search for, 2 3 2 - 2 3 3 w a g e labor and, 99 w o m e n and, 105 Sungai G a j a h d e m o g r a p h i c s of, 56 (table) landholding and income patterns in, 55, 56 middle class in, 6 5 - 6 6 migration into and out of, 56 (table) nonagricultural occupational patterns in, 58 (table) pajak in, 6 2 - 6 3 rice lands in, 57 (table) tenurial a r r a n g e m e n t s for, 5 8 (table) Surplus labor, 17, 18, 92, 148, 249 nonagricultural j o b s and, 252 p l a c e m e n t of, 2 5 2 - 2 5 3 seasonal growth of, 194 Survival strategies, 104, 233, 236, 276 heterogeneity of, 113

321

analysis of, 123, 124 Taiwan agricultural growth in, 15 (table), 287-288 e c o n o m i c growth of, 287, 289 exports by, 287 G D P of, 10 (table), 2 9 0 industrialization of, 288, 289, 290 internal market of, 287 labor force structure in, 12 (table) nonagricultural labor force in, 147 security issues and, 2 8 7 trade liberalization by, 2 8 8 T a x e s , 2 6 5 - 2 6 6 , 267 TDR1. See Thailand D e v e l o p m e n t Research Institute Tebasan contract system, 214 Technology agricultural, 3, 286, 287, 291 biological, 34, 101 impact of, 6, 34, 101, 214, 286 labor process and, 5 4 - 5 5 , 62 preservation, 34, 199 T e n a n c y , 53, 137, 158, 291 types of, 1 6 2 - 1 6 3 n 2 Thai Labor Force S u r v e y , 2 0 4 n 3 Thailand agricultural e m p l o y m e n t in, 1 7 1 - 1 7 2 , 294, 2 9 9 n 3 agricultural growth in, 14 (table), 15 (table), 167, 171, 2 9 3 distributional inequalities in, 2 9 3 e c o n o m i c growth of, 1 6 7 - 1 7 4 , 175, 294 education in, 1 9 2 - 1 9 3 , 2 9 3 - 2 9 4 e m p l o y m e n t in, 169 (table) export-promotion policy by, 1 7 3 - 1 7 4 FD1 in, 293 G D P of, 10 (table), 167, 168 (table), 171, 2 0 4 n l , 2 9 0 income sources in, 197 (table) industrialization of, 1 7 3 - 1 7 4 , 290, 293-294 labor force structure in, 12 (table) n o n f a r m e m p l o y m e n t in, 6, 16 (table), 167 public sector projects in, 169 rural n o n f a r m h o u s e h o l d s in, 196 (table) service sector in, 281, 294 structural change in, 1 6 7 - 1 7 4

322

Index

w a g e rates in, 179 (table), 195 (table) Thailand Development Research Institute (TDRI), 170 on employment, 188 on wage payments, 1 8 8 - 1 8 9 Thanarat, Sarit cash holding of, 2 0 4 n 4 growth-oriented policy of, 173 Theories metaphor and, 2 1 - 2 4 problems with, 23, 4 8 Third Five-Year Plan (Bangladesh), 105, 109 Threshing, 181 Tied contracts, 186 T i m e rate contracts, 1 8 8 - 1 8 9 Time-series data, lack of, 1 6 - 1 7 Times of India, on dairy d e v e l o p m e n t , 85 Tok raeng contract, 186 T o w n s h i p enterprises, 2 6 8 n l burdens for, 2 6 8 n 2 objectives of, 2 5 2 - 2 5 3 profits from, 254, 255, 2 5 6 - 2 5 7 (table), 258 subsidies from, 2 5 3 - 2 5 4 , 255 Trade, 147, 288 development and, 19 economic development and, 19 inward-looking, 291 rural, 227 w o m e n and, 227 Transformation, 26, 39, 276, 280 agrarian, 1, 102, 104, 2 8 5 - 2 9 7 broader dimension of, 19 future of, 268 influences on, 20, 21 rural work and, 35 structural, 290, 299 unevenness in, 1 9 - 2 0 Transplanting, 181, 294 Transportation costs of, 1 7 9 - 1 8 0 , 199 improvements in, 2 0 4 n l 0 , 216, 221-222 technologies, 34 wage rates and, 1 7 9 - 1 8 0 U M N O . See United Malay National Organization Underemployment, 4, 158, 251

cultural, 105 green revolution and, 112 growth of, 73, 137 Unemployment cultural, 105 growth of, 73 migrants and, 191, 2 9 2 - 2 9 3 solution to, 3 United Malay National Organization ( U M N O ) , 51, 65 J K K K and, 65 National Front and, 64 P A S and, 64, 66 United States G D P structure for, 11 (table) labor force structure in, 13 (table) Universiti Sains Malaysia, 6 8 n 3 M u d a S c h e m e and, 5 2 - 5 3 University of the Philippines Institute for Small Scale Industries, 148 Upper C h a o Phraya River Delta, irrigation and consolidation projects in, 172 " U r b a n bias" hypothesis, 19 Urbanization, 19, 29, 37, 239 agrarian relations and, 276 influence of, 32 patterns of, 276 Urban-rural dichotomy, rejection of, 5 U.S. Agency for International Development ( U S A I D ) , 1 2 7 n l 0 USA1D. See U.S. Agency for International Development U-sector, Z-goods sector and, 146 Variability, problems with, 2 5 - 2 6 Village enterprises burdens for, 268n2 profits from, 254, 255, 2 5 6 - 2 5 7 (table), 258 subsidies from, 2 5 3 - 2 5 4 , 255 Villages, 201 nonagricultural income for, 197 types of, 1 2 8 n l 5 , 197 Vulnerable G r o u p D e v e l o p m e n t , Bangladesh and, 112 W a g e labor, 30, 1 2 8 n l 7 , 214, 280 assumptions about, 25 daily, 188 rural polarization and, 2 4 - 2 5 subsistence and, 99

Index

women and, 81 Wage rates, 17 (table), 30, 189 (table) decline of, 15, 17, 1 2 8 n l 8 determinants of, 176-181 gender and, 177-178, 179 (table) in-kind, 1 2 8 n l 4 rice farming, 178 (table) Wakil rakyat, influence of, 6 3 - 6 4 Welfare concerns for, 3 - 4 crisis in, 32, 279, 284 profits for, 2 5 4 - 2 5 5 social, 110, 249, 279 Wet-rice agriculture, 48, 220, 224, 226, 232, 237 seasonality in, 171 White, Benjamin, on rural nonfarm employment, 241 White revolution, 8 4 - 8 9 , 91

323

Work concept of, 29, 101 significance of, 2 8 5 - 2 9 7 as social relationship, 30, 35, 36 transformation of, 28, 30, 100 Work programs, 112 impact of, 75 work force for, 1 2 8 n l 6 World Bank, 2, 9, 137, 204n3 "basic needs" policy by, 73 NIP and, 109 rice subsidies and, 67 war against absolute poverty by, 73 World Employment Program (ILO), goal of, 94n3 Yok-Shiu Lee, 296 Z-goods sector, 144, 145, 146 Zartjera, 35

About the Book P r e v i o u s a n a l y s e s of e m p l o y m e n t d i v e r s i f i c a t i o n in r u r a l A s i a h a v e b e e n s t r o n g l y i n f l u e n c e d by t w o a s s u m p t i o n s — t h a t t h e p r i n c i p a l f o r m s of div e r s i f i c a t i o n a r e all w i t h i n a g r i c u l t u r e , a n d that t h e e m e r g e n c e of n o n f a r m e m p l o y m e n t c o n n o t e s the e m e r g e n c e of " p o s i t i v e " e c o n o m i c d e v e l o p m e n t . Q u e s t i o n i n g t h e s e a s s u m p t i o n s , this b o o k is t h e result of a t h r e e - y e a r c o m p a r a t i v e a n d c r o s s - d i s c i p l i n a r y e x a m i n a t i o n of t h e d y n a m i c s a n d s i g n i f i c a n c e of n o n f a r m w o r k in rural B a n g l a d e s h , C h i n a , I n d i a , I n d o n e s i a , Malaysia, the Philippines, and Thailand. T h e authors d o c u m e n t the c o m p l e x c o n n e c t i o n s b e t w e e n m a c r o and m i c r o p r o c e s s e s of e m p l o y m e n t d i v e r s i f i c a t i o n in rural a r e a s , g i v i n g s p e cial a t t e n t i o n to the g r o w t h of a s e r v i c e e c o n o m y , the r e l a t i o n s h i p b e t w e e n e m p l o y m e n t diversification and the c h a n g i n g o r g a n i z a t i o n and perform a n c e of a g r i c u l t u r e , a n d t h e i m p a c t of e m p l o y m e n t d i v e r s i f i c a t i o n on the social a n d p o l i t i c a l r o l e s of w o m e n . A m a j o r c o n t r i b u t i o n is their a s s e s s ment of the c o n d i t i o n s u n d e r w h i c h e m p l o y m e n t d i v e r s i f i c a t i o n d o e s — a n d d o e s n o t — a p p e a r to be " d e v e l o p m e n t a l . "